A World Bank loan to strengthen infrastructure and boost climate resilience in the city of Vinh Long


HANOI, January 06, 2022—The Government of Vietnam and the World Bank have signed a $126.9 million financing agreement to improve infrastructure access, connectivity and reduce flood risk in the urban core of Vinh Long City.

Vinh Long City, strategically located along the economic corridor that connects Ho Chi Minh City to the Mekong Delta, has great potential to become a regional hub for agribusiness, trade and tourism. However, flooding and poor environmental sanitation are major impediments that hinder the development of the city. Located at low altitude in the plain of the Tien River, about 60% of the city is prone to flooding.

The Vinh Long City Urban Development and Climate Resilience Improvement Project, at a total cost of $202.2 million, will help remove physical constraints to development in the central urban area through the development of flood control, drainage, sewage collection and treatment systems and investments. on the main urban roads.

Strengthening urban infrastructure is key to a city’s ability to unlock its potential, preserve its achievements and withstand multiple shocks,” noted World Bank Acting Country Director for Vietnam Rahul Kitchlu. “Our support will enable Vinh Long City to pursue ambitious investments to build resilience against climate risks and disasters.”

Almost half of the project funding will be used to develop flood risk mitigation measures, including embankments and tidal gates, rehabilitation and upgrading of the canal and drainage system, and investments in green infrastructure to retain and infiltrate rainwater. The project will also support the construction of three strategic roads that will improve intercity connectivity and further strengthen the city’s flood protection capacity.

This project will further improve urban management and planning through investments in data, information and communication technologies. Key elements will include an integrated flood risk management information system, a geospatial data sharing platform, information, education and communication campaigns and better transport management.

The $126.9 million credit is provided through the World Bank’s International Development Association (IDA), the Bank’s concessional lending window. The project is co-funded by a $19.5 million grant from the Development Related Infrastructure Investment Vehicle (DRIVE), a facility provided by the Dutch Ministry of Foreign Affairs. The balance of the project cost is to be funded by the Government of Vietnam.


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