Worth a total of US$218.47 million, of which $152.43 million is loaned by the World Bank, the project covers four major categories involving roads, environmental works, a transport system and management training for local officials.

Main roads and their branch streets will be upgraded and a sewage and lighting system in low-income neighbourhoods will be built in the districts of Hai Chau, Thanh Khe, Lien Chieu, Cam Le and Son Tra.

Three areas will be set aside for residents who must be resettled due to the construction.

In addition, environmental infrastructure will be improved by dredging Phu Loc River, beautifying sights at riverbanks and renewing waste water treatment systems.

A third project component calls for the construction of a transport system which will link Nguyen Huu Tho Street to Hoa Quy Ward, extending 6.8km and including a six-lane road and three bridges ranging from 100 to 800m in length.

A southern circuit road that runs from national road 1A to Tran Dai Nghia Street in Ngu Hanh Son District, measuring five kilometres in length and 33m in width, will also be built.

At least $4.2 million will be spent o­n enhancing management capacity of local authorities to ensure the project proceeds o­n a fast track and is of a high quality.

Two-hundred-and thirty-six households out of 671 affected by the project will have to be relocated. World Bank representatives will assure that residents’ compensation will be fair and based o­n market prices.

The project is currently the largest infrastructure project funded by the World Bank in Viet Nam, which showcases the bank’s strong commitment to sustainable development of Da Nang City.

The city’s southern area is a large, flat area bordering the historic and well-touristed town of Hoi An, making it well-positioned for urban development.

The area has yet to attract investors because of inadequate infrastructure, but the new urban area is expected to create a fertile ground for real estate investors.