The northern coastal city of Hai Phong and nine Mekong Delta provinces are drafting climate change adaptation projects worth $414.7 million and $500 million, respectively, in cooperation with the World Bank.
Hai Phong
The city plans to take loans of $258.2 million from the WB and provide reciprocal capital of $156.5 million for the project, which is scheduled for 2023-2029. Municipal authorities have urged relevant state agencies to soon submit the project to the Prime Minister for approval.
The project is an effort of Hai Phong to become a logistics and industrial hub of Vietnam and part of its sustainable growth strategy. It features goals of improving the socioeconomic growth, urban development, water environment, flood reduction and resilience of urban areas.
Hai Phong is among six cities around the world participating in the WB program on urban areas adapting to climate change. The project is set to take place in Hong Bang, Hai An, Thuy Nguyen, and An Duong districts.
Mekong Delta
The WB’s draft Mekong Delta Climate Resilience and Integrated Transformation Project (WB11-MERIT) is set to take place in nine Mekong Delta provinces of Ca Mau, Bac Lieu, Soc Trang, Hau Giang, Kien Giang, Dong Thap, Ben Tre, Tra Vinh, and Tien Giang. An Giang province recently expressed its willingness to join the project.
The $500-million project will cover 960,000 hectares and benefit 920,000 households. It features three components: strengthening institutions and communication, investing in regional climate-resilient infrastructure, and enhancing livelihoods and rural economy in line with climate change adaptation.
According to the Central Office for Water Resources Projects, under the Ministry of Agriculture and Rural Development, the project will help develop key product lines and boost local incomes.
As the drafting team, the office added that the project would also transform fragmented economic models into economic concentration activities and combine agricultural economics with urbanization, industrialization, and tourism.
Deputy Minister of Agriculture and Rural Development Nguyen Hoang Hiep has asked relevant units to collaborate with the localities to submit first sub-projects to the WB in December 2023.
As of October 4, 2022, the WB provided $25.16 billion in grants, concessional loans, and credit to Vietnam through 216 operations since 1993, according to the lender. Vietnam’s existing portfolio consists of 22 active projects financed by the International Development Association and the International Bank for Reconstruction and Development, with a total net commitment of $4.74 billion.
The country needs to invest about $368 billion from now until 2040 to build a climate resilient and low-carbon economy, according to the Vietnam Country Climate and Development Report released by the World Bank in July 2022.