World Bank Approves $53 Million to Improve Urban Infrastructure in Lao Cai and Phu Ly cities

SOURCE: World Bank

June 9, 2017

Washington D.C, June 9, 2017 –The World Bank’s Board of Executive Directors approved today US$ 53 million to support infrastructure development in Lao Cai and Phu Ly, two emerging middle cities in northern Vietnam.

The additional financing will bolster the efforts of the Medium Cities Development Project (MCDP), which has so far benefitted over 210,000 people – exceeding initial targets. Infrastructure services that will be improved include water treatment and wastewater collection; flooding prevention in low lying areas; and transport services in areas with poor or non-existent roads or access to transport networks.

“The Medium Cities Development Project has shown that improved infrastructure services can transform communities – water and sanitation facilities lead to healthier children and families, flood prevention infrastructure provides opportunities to introduce much-needed public space, and better roads bring communities closer to economic opportunities. This additional investment means even more communities will benefit from improved urban environments,” said Ousmane Dione, World Bank Country Director for Vietnam.

Six schools constructed by the project are recognized as the best schools in their respective provinces, while investments in public toilets and school sanitation facilities have led to better public health.

Meanwhile, the upgrading of basic infrastructure facilities such as sewer systems and rehabilitated roads have helped 85,000 people in several wards of Lao Cai and Phu Ly cities. Flooding and pollution caused by wastewater have also been addressed, through improvements of retention lakes, drainages and sewer system and construction of Wastewater Treatment Plants.

The additional investment will be used to bridge the financing gap caused by exchange rate fluctuations since project inception.

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