World Bank to provide US$125 million for HCM City’s urban development
The World Bank has approved a US$125 million finance to assist Ho Chi Minh City in strengthening the institutional foundations for its sustainable urban development.
Ho Chi Minh City is emerging as a global megacity.
This is the World Bank’s first budget support operation to a sub-national entity in Vietnam.
The programme aims to remove institutional bottlenecks to enable Vietnam’s largest city and economic powerhouse to address some of its most pressing urban governance challenges.
As a key growth driver which generates one fifth of Vietnam’s GDP, the benefits of reforms in HCMC are expected to go beyond the city to the wider economy, the World Bank said in a press release.
Ousmane Dione, the World Bank chief Vietnam, stated that Ho Chi Minh City is facing a host of serious urban challenges as an emerging global megacity and commercial hubs with significant opportunities.
He added that successful management of rapid urban growth requires effective and integrated urban governance as well as adequate investment in urban infrastructure and service delivery
The programme is designed to institute integrated cross-sectoral reforms in areas that are crucial for the city’s urban development including land use planning, fiscal governance, wastewater management, public transport, and economic competitiveness.
The credit is provided by the International Development Association.