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The funding, which goes to the Second Ho Chi Minh City Environmental Sanitation Project, will improve the environment by treating wastewater, strengthen institutional capacity to manage sanitation and wastewater services, and increase public awareness on the benefits of improved sanitation practices.

"The project is part of the World Bank strategic partnership with Ho Chi Minh City which supports economic growth, urban development including flood risk management and improving urban services. The improvements to environmental sanitation to be funded under the project will increase the quality of life for about 1.3 million residents," said Victoria Kwakwa, World Bank Country Director to Vietnam.

Nhieu Loc-Thi Nghe project

The project includes a wastewater treatment plant that will treat wastewater collected in the Nhieu Loc-Thi Nghe basin and from parts of District 2 of the city. The plant will treat untreated wastewater that is currently being discharged to the Saigon River.

Through the project, sewer networks and house connections to the network will be installed in parts of District 2. The project will also provide technical assistance to improve sanitation and wastewater management practices in the city.

“We place emphasis on both improved wastewater treatment infrastructure and management, as well as awareness raising to bring about a sustainable liveable urban environment,” said Sudipto Sarkar, World Bank Lead Specialist and task team leader. “Thus, an Environmental Learning Centre will be established to raise awareness of sanitation issues and the environment that will benefit the people of the Ho Chi Minh City.”

The total project cost is US$495 million, of which US$250 million will be financed through a loan from the International Bank for Reconstruction and Development (IBRD) and a US$200 million credit through the International Development Association (IDA). HCMC will provide US$45 million from its own resources for the project.