Under a statement issued on Thursday (7 May 2009), the prime minister agreed providing additional loans funded by the World Bank to Vietnam Urban Upgrading Project, which is being carried out in HCMC, Can Tho, Haiphong and Nam Dinh. The additional loans will be allocated to Nam Dinh with US$9.14 million, Haiphong with US$10.45 million, Can Tho with US$11.6 million and HCMC with US$128.8 million. The prime minister also asked four cities and provinces to arrange the counter capital for the project, which will come from provincial coffers.

The Vietnam Urban Upgrading Project, being executed from 2004 to 2012, aims to upgrade infrastructure, improve living conditions of more than one million low-income people in four cities and provinces, improve urban environment and reduce poverty and encourage community involvement in urban improvement. Besides, millions of people will benefit from infrastructure upgrading and environment improvement.

The project needs an investment capital of US$417.5 million, of which the global lender provides US$222 million while the balance is covered by other international donors and Vietnam’s counter capital.

Within the project, roads, water and power supply systems, public lighting, garbage dumpsites, clinics, schools, and markets in low-income residential areas are to be improved. As scheduled, by 2009, more than 9,800 households in Can Tho, 46,200 households in Haiphong, 47,600 households in HCMC and 19,200 households in Nam Dinh will be living in better conditions.

The HCMC Urban Upgrading Project is a part of the above project and affects 109 slums in the city.

Nguyen Hoang Nhan, head of the city’s project management unit, said some 1.55 million residents, including 750,000 in Tan Hoa-Lo Gom Basin, will benefit from the project. The project requires participatory development with active involvement by communities in critical stages of preparation, design and implementation.

“Infrastructure improvement will take into account the communities’ and local administrations’ willingness and ability to pay. Infrastructure will be designed up to appropriate functional standards to ensure that as many people as possible benefit,” Nhan explained.