WB approved $80 million preferential credit to boost life development project in Thai Nguyen

A credit amount of $80 million from the International Development Association (IDA) was approved by the World Bank in order to enhance the quality of crucial urban infrastructure such as transport connectivity, drainage and sewer systems, public spaces and preschools in Thai Nguyen city, in North East Vietnam.

Additionally, the financing will aid developments in the city’s urban planning and management, comprising climate change and disaster risk concerns.

The World Bank’s International DevelopmentAssociation (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty and improve poor people’s lives.

The Dynamic City Integrated Development Project will precisely advance over 81,000 residents of Thai Nguyen city, by decreasing travel time through improved transport connectivity and strengthening urban environmental sanitation through enhanced drainage and sewer system, specifically in flood-prone areas.

Furthermore, this project will promote child care services through new and rehabilitated kindergartens and quality of life through enhanced public spaces.

The capacity of Thai Nguyen city’s local authorities will also be boosted as the project will provide it with the technical assistance for integrated strategic urban planning, public transport planning and sustainable asset management.

It is forecasted that the project will cost roundly $100 million, of which $80 million will be funded by the Transitional Support Window of IDA and $20 million will be counterpart financing from the provincial government.

“As one of the key centers and economic engines of the Northern Mountainous Region, Thai Nguyen City is undergoing rapid urbanization, and thus urgently needs improved urban infrastructure services,” said the World Bank Country Director to Vietnam, Ousmane Dione.

“The proposed project is expected to not only support the city in improving basic infrastructure but also help the city to develop a comprehensive and integrated urban plan that links physical development to overall improvements to socio-economic conditions. The successful implementation of this project may be replicated to other medium cities in support of the Government’s urban development agenda,” he said.

Thai Nguyen city is one of the cities proposed by the Government of Vietnam to receive support based on their economic growth potential. The Project is consistent with the World Bank’s Country Partnership Framework as it will contribute to boosting urban planning and management, support resilient urban infrastructure investments and improve disaster risk management.

The Vietnam National Urban Development Master Plan envisages the development of secondary cities as centers to drive development within larger urban areas and provinces. This is consistent with international experience, where there is growing recognition of the role of secondary cities as catalysts for economic activity and development.