PANO - The World Bank (WB) and the State Bank of Vietnam (SBV) on July 11 signed agreements for loans and credits, worth US$ 560 million in total, for two projects to support urban development, climate resilience and sustainable livelihoods in the Mekong Delta.

The two sides at the signing ceremony

Out of the total, US$ 250 million will be used for the Can Tho Urban Development and Resilience Project, to reduce flood risk and improve connectivity between Can Tho city center and the new urban areas, benefiting more than 420,000 urban dwellers, and enhance the capacity of city authorities to manage disaster risk. The remaining US$ 310 million will be ear-marked to build climate resilience and ensure sustainable livelihoods of 1.2 million people living in nine Mekong Delta provinces affected by climate change, salinity intrusion, coastal erosion, and flooding.

“Recent extreme weather phenomena in the Mekong River Delta, including flooding, drought and salinity intrusion, are negatively affecting the lives of people in the region – both in urban and rural areas, most of whom are poor,” said Achim Fock, Acting Country Director for the World Bank in Vietnam. “We believe the projects signed today will contribute to efforts to help the region adapt to climate change in a sustainable manner.” The Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods Project supports better climate-smart planning and improved climate resilience of land and water management practices. The project will benefit farmers (especially rice) in the upper delta provinces and aquaculture farm and fisher-folk households along the coastal provinces in the region, including the Khmer ethnic minority people living in Soc Trang and Tra Vinh provinces. The project is a critical part of the World Bank’s long-term engagement in the Mekong Delta to strengthen integrated adaptive delta management by bringing together the different sectors and provinces to plan, prioritize, and implement resilient investments. Meanwhile, the Can Tho Urban Development and Resilience Project supports the construction of surrounding embankment, tidal gates/valves and improved rainwater storage and drainage systems, as well as other non-structural measures to help the city manage urban flood risk. The project will also help increase intra-city connectivity and encourage new urban development in the less flood prone area of Cai Rang.

Under the project, management systems will also be built to improve spatial planning, data and information management and public financial management. The International Development Association (IDA), the World Bank’s fund for the poorest, finances $310 million for the Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods Project, and $125 million for the Can Tho Urban Development and Resilience Project. The International Bank for Reconstruction and Development (IBRD), the World Bank’s fund for middle-income countries, also provides $125 million for the Can Tho Urban Development and Resilience Project.

Huu Duc