The money will be used to fund urban development, climate resilience and sustainable livelihoods.
Vietnam will use $250 million for the Can Tho Urban Development and Resilience Project, to reduce flood risk and improve connectivity between Can Tho’s city center and new urban areas, benefiting more than 420,000 urban dwellers, and help city authorities to manage disaster risks.
The remaining $310 million will be used to build climate resilience and ensure sustainable livelihoods for 1.2 million people living in nine Mekong Delta provinces affected by climate change, saline 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,” he added.
The Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods Project supports climate-smart planning and improved climate resilience on land and water.
The project will benefit farmers in the upper delta provinces and aquaculture farms 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 different sectors and provinces to plan, prioritize and implement resilient investments.
The Can Tho Urban Development and Resilience Project supports the construction of surrounding embankments, tidal gates and improved rainwater storage and drainage systems, as well as other non-structural measures to help the city manage urban flood risks.
The project will also help increase intra-city connectivity and encourage new urban development in the less flood prone areas of Cai Rang. Under the project, management systems will also be built to improve spatial planning, data and information management and financial management.
The International Development Association, the World Bank’s financing arm, will offer $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, the World Bank’s fund for middle income countries, will also provide $125 million for the Can Tho Urban Development and Resilience Project.