HCM City seeks WB loans

April 11, 2016 - 11:06

HCM City has asked the World Bank to consider providing loans for green transport and flood prevention projects in fiscal year 2016.

A conner of HCM City. — VNA/VNS Photo Hioàng Hải

HCM CITY Viet Nam News -— HCM City has asked the World Bank to consider providing loans for green transport and flood prevention projects in fiscal year 2016.

Nguyễn Thành Phong, chairman of HCM City’s People’s Committee, said the World Bank (WB) should also continue to send experts to work with the HCM City Department of Finance to fully work out the outline of this year’s Development Policy Loan Programme.

Phong and representatives from other agencies on Tuesday received a delegation from the WB led by the bank’s country director for Việt Nam Victoria Kwakwa.

Kwakwa said the delegation’s visit aimed to prepare for the loan programme with total funds of US$50-150 million, which will give top priority to the city’s green transport development and flood-prevention projects.

Through the loan programme, the WB will help HCM City to build environmentally friendly transport works.

The first bus rapid transit (BRT) project, which is under implementation, matched well with the city’s development plan, she said.

But the city’s tramway project would be ineffective because of the huge capital demand for site clearance and construction, so the WB will reconsider financing the project, she added.

She praised the progress of flood prevention projects and said she hoped that site clearance and resettlement would not interfere with people’s daily lives.

She said the city, when carrying out WB-funded projects, should ensure that the work should not disrupt the lives of residents.

Chairman Nguyễn Thành Phong said the city would work with the ministries of Planning and Investment and Finance to seek approval of the programme’s agenda and implementation.

Local authorities want the BRT project to meet residents’ travel demand and reduce traffic jams. The urban planning and flood-prevention projects are designed to improve the living environment for citizens.

However, the city’s financial resources are limited, so assistance by WB and others such as the Asian Development Bank are needed for the projects’ implementation.

Local authorities have pledged to resettle residents who have to move, look after their employment and children’s education, and provide them with capital assistance to start new businesses.

So far, 3,141 out of 3,212 households have handed over their land for flood-prevention projects. The remaining 71 households have refused to move.

The WB recently confirmed a package of US$239 million from the bank’s International Development Association (IDA) and $46 million from International Bank for Reconstruction and Development (IBRD) to implement the second phase of the Coastal Cities Environmental Sanitation Project. 

The project will be implemented from 2016 to 2020 in the central province of Quảng Bình, Bình Định, Khánh Hoà and Ninh Thuận. — VNS