The World Bank's additional financing will facilitate access to clean water in Vietnam. (Photo: Tran Phuoc Thao)
The World Bank
has approved an additional loan worth $119 million for an ongoing project to respond to key urban development challenges focusing on assuring water supply and wastewater needs of selected urban areas in Vietnam.
The additional financing for the Vietnam Urban Water Supply and Wastewater Project will mostly be used for a wastewater and drainage subproject for Binh Duong province, the bank said in a press release Friday.
It will also cover cost overruns due to the appreciation of the U.S. dollar, and provide technical support to the Ministry of Construction to prepare a new water supply investment in the Mekong Delta.
The financing will connect 65,872 households with 450,382 people to clean water sources, and improve sanitation conditions for 312,051 urban dwellers.
The additional financing includes a credit of $50 million from the International Development Association (IDA), and a loan of $69 million from the International Bank for Reconstruction and Development (IBRD). Both the loans have a maturity of 25 years and a grace period of five years.
The original project, which was approved by the World Bank’s Board in May 2011, sponsored seven water supply and seven wastewater subprojects in 10 provinces, with an average population size of 100,000 in the urban centers.
The World Bank at the end of April approved a $535 million loan for improvements to road and bridge connections as well as flood control and sanitation conditions in Vietnam.