The State Bank of Vietnam and the World Bank signed agreements for atotal of 450 million USD worth of loans to further improve Ho Chi MinhCity's environment and sanitation.

The funding, meant for theSecond HCM City Environmental Sanitation Project, will improve theenvironment by treating wastewater, strengthen institutional capacity tomanage sanitation and wastewater services and increase public awarenessof the benefits of improved sanitation practices.

"The projectis part of the World Bank strategic partnership with HCM City whichsupports economic growth, urban development including flood riskmanagement and improving urban services. The improvements toenvironmental sanitation to be funded under the project will increasethe quality of life for about 1.3 million residents," Victoria Kwakwa,the World Bank’s Country Director, said.

The project includes atreatment plant for wastewater collected in the Nhieu Loc-Thi Nghe Basinand parts of District 2. It will treat untreated wastewater that iscurrently being discharged into the Sai Gon 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.

"Weplace emphasis on both improved wastewater treatment infrastructure andmanagement as well as raising awareness to bring about a sustainable,liveable urban environment," Sudipto Sarkar, World Bank Lead Specialistand task team leader, said.

"Thus, an Environmental LearningCenter will be established to raise awareness of sanitation issues andthe environment that will benefit the people of the HCM City."

Thetotal project cost is 495 million USD, of which 250 million USD will befinanced through a loan from the International Bank for Reconstructionand Development and a 200 million USD credit through the InternationalDevelopment Association.

HCM City will provide 45 million USD from its own resources.-VNA