Vietnam PM Okays Negotiation Results for WB-funded Urban Upgrading Project

Vietnamese Prim Minister Nguyen Tan Dung has ratified negotiation results for a project to upgrade urban areas in the Mekong Delta funded by the World Bank (WB).  The PM has authorized Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh to ink an agreement with the WB, the government said on its website. The SBV has been asked to work with the Ministry of Construction, the Ministry of Foreign Affairs, the Ministry of Justice and authorities in Can Tho, Ca Mau, Dong Thap, Tien Giang, Kien Giang and Tra Vinh to make the financing agreement soon effective. On the same day, the PM also approved a legal framework for resettlement compensation in line with the project. The Mekong Delta Region – Urban Upgrading Planning (MDR-UUP) project costing $449 million with 65% funded by the WB with priorities in building constructions including roads, water supply, solid waste recycle to serve locals’ daily life is expected to serve directly 142,000 beneficiaries in urban areas and 1.39 million people in overall. Vietnam is facing with many thorny problems resulting from the rapid urbanization with flows of migrants to big cities due to the concentration of socio-economic, political, educational and cultural institutions together with the establishment of industrial parks. (Chinhphu.vn April 11)