Vietnam President Urged to Approve $292M WB Loan for Urban Upgrade Project

The government of Vietnam has sought an approval from Vietnamese President Truong Tan Sang for a $292-million World Bank (WB) loan for a project on upgrading urban areas in the Mekong Delta region. The Mekong Delta Region – Urban Upgrading Project (MDR-UUP) project costing $449 million with 65% or $292 million 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 300,000 beneficiaries in urban areas and 1.39 million people in overall. Earlier, the prime minister 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. 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 April 11)