High Expectations for the Priority Infrastructure and Urban Development Project in Vinh

Recently, the World Bank (WB) has approved a loan for the Priority Infrastructure and Climate-Responsive Urban Development Project in Vinh City (Nghệ An Province). With an investment of over USD 190 million, the project promises to bring significant transformations to Vinh City.

Investment of Over USD 190 Million

In a discussion with reporters, Mr. Nguyễn Sỹ Diệu, Vice Chairman of the People's Committee of Vinh City (Nghệ An Province), stated that the World Bank (WB) has agreed to finance the loan for Nghệ An Province as well as Vinh City to implement the Priority Infrastructure and Climate-Responsive Urban Development Project in Vinh. This project aims to enhance Vinh City's infrastructure, environment, especially addressing issues related to drainage, wastewater treatment, creating green and clean urban landscapes, and improving urban management and development capabilities.

The total investment for the entire project is over USD 190 million (over VND 4 trillion), with the WB providing a sponsored capital of USD 129.5 million. Currently, the People's Committee of Nghệ An Province and Vinh City are coordinating with central ministries, departments, and agencies to fulfill required procedures and soon sign agreements with the WB for the prompt implementation of the project.

Since the end of 2021 and the beginning of 2022, the Climate-Responsive Urban Development Project in Vinh has received the Prime Minister's approval for investment principles. The project comprises four components: the first part involves integrated investment in drainage, environmental sanitation, and connectivity. This part will upgrade and expand the second and third-grade drainage systems for the entire central area, improve transportation connectivity, and enhance water drainage. The second part focuses on expanding storage capacity to reduce urban flooding. The third part involves the restoration of the Vinh River, and the fourth part focuses on developing systems and capabilities to improve climate-responsive urban areas.

A Completely New Look for the Vinh River

Among the four project components, the highlight that marks a significant turning point for Vinh City is the third part, the restoration of the Vinh River. In June 2022, the People's Committee of Nghệ An Province issued Decision No. 1525/QD approving the detailed construction planning at a 1:500 scale on both banks of the Vinh River. This is a crucial legal basis to protect and implement the approved planning along the Vinh River.

Nguyễn Ngọc Phong, Director of the Project Management and Construction Board of Vinh City, mentioned that the total investment for the restoration of the Vinh River is over USD 29 million. With this project, the eastern part of Vinh City will become a prominent and outstanding area in the near future. Particularly, the nearly 6km-long Vinh River will undergo a completely new transformation, providing a strong impetus and tapping into long-term economic potential.

It is worth noting that in Nghệ An Province, there are currently 14 projects using WB funds with a total amount of around USD 290 million, of which WB's sponsored capital is about USD 220 million. These projects are generally showing positive effects and bringing about significant benefits. Among them, the Medium-sized Urban Development Project in Vietnam – a sub-project of the Vinh Urban Development Project, also used WB funding with a total of USD 125 million, and WB's sponsored capital alone is USD 90 million. This project was implemented from 2012 and concluded in 2019, currently proving to be highly effective.