WB stops funding water drainage project in HCM City

The information was released by the Office of the municipal People’s Committee, which announced a recent working session between Chairman of the People’s Committee Nguyen Thanh Phong and WB Country Director for Vietnam Ousmane Dione.

Accordingly, the WB highly valued the southern city’s efforts to coordinate with WB representatives in seeking solutions to obstacles to site clearance, compensation and resettlement of the project.

However, after considering many factors, the WB asked for HCM City’s unanimity in carrying out procedures for terminating the project.

The WB side affirmed that it will continue to assist the city, thus contributing to local development, especially in urban infrastructure development, flood prevention, and environment improvement.

It said the planned capital for this project, about US$400 million, will be spent on other projects depending on HCM City leaders’ proposal.

HCM City will continue implementing the water drainage and pollution reduction project by using local resources or other forms of investment, according to the People’s Committee Office.

Chairman Phong assigned the municipal Department of Planning and Investment to work with relevant agencies to advice the People’s Committee about procedures for terminating the WB funding for the project. 

They were also ordered to suggest other projects on urban infrastructure development, flood prevention and environment improvement that need investment so that the municipal administration can continue to work with the WB.

The project on Tham Luong – Ben Cat – Rach Nuoc Len canal is aimed to drain water, improve the environment, expand waterway traffic, stabilise local residents’ life and give a facelift to areas on the banks of Tham Luong canal which cover nearly 15,000ha of land.

It spreads on a length of 32km in the districts of Binh Thanh, Go Vap, Tan Binh, Tan Phu, Binh Tan and Binh Chanh and Districts 12 and 8.