The World Banks Country Director for Vietnam, Mr. Klaus Rohland, and the State Bank of Vietnam Governor, H.E. Le Duc Thuy, Thursday signed an agreement for the 157,8 million US dollar (947 mio. DKR) IDA credit to help raise farm household income and further reduce rural poverty in Vietnam, reports the Bank in a press release.
The Vietnam Water Resources Assistance Project, which was approved by the World Banks Board of Directors in March 2004, supports the development of national programs for irrigation modernization and dam safety. It also begins the long-term process of integrated development in the Thu Bon river basin in the Central region of Vietnam.
State Bank Governor Le Duc Thuy said: – The Government of Vietnam has made agricultural modernization a top priority in our Strategy of Socio-Economic Development 2001-2010, as an instrument of growth and poverty reduction.
– The Vietnam Water Resources Assistance Project will support the Governments strategic goals of agriculture modernization, improved water resources management, and natural disaster mitigation.
Agriculture provides about a quarter of Vietnams GDP and exports, and employs two third of the labor force. Further crop diversification and increases in productivity require modern irrigation infrastructure and more efficient service delivery of irrigation and drainage.
The Project, the first to modernize Vietnams irrigation systems, will help farmers with development of small-scale/farm level irrigation network and promotes a new concept in irrigation management by involving farmers in the management cycle through participatory irrigation management initiative.
Irrigation agencies will be held accountable for their technical and financial performance.
– Whether the project can sustain its benefits depends primary on provincial leadership, said Klaus Rohland, Director of the World Bank in Vietnam.
– As most irrigation schemes are owned and operated by provincial governments, provincial project implementation units are responsible for most procurement and all construction supervision and operation activities, added he.
The Project has four components: Irrigation Modernization; Dam Safety Management; Thu Bon Basin Development and Project Management and Capacity Building.
The Irrigation Modernization component will renovate the infrastructure facilities and management structure of the six largest irrigation schemes in Vietnam including: Dau Tieng, Cau Son – Cam Son, Phu Ninh, Ke Go, Yen Lap and Da Ban. This component aims at improving irrigation and drainage services on approximately 130.000 hectares.
The Dam Safety Management component will help establish a National Dam Safety unit in MARD and address remedial safety works in at least three to-be-identified MARDs dams. It also finances the improvement of the Hoa Binh dam safety instrumentation system through participation of Electric City of Vietnam (EVN).
In the Thu Bon Basin, the Bank will fund the high priority Quang Hue River Flow Stabilization works that control flows of water to the cities of Da Nang and Hoi An of Quang Nam province.
The component will help establish a basin-wide water management system, and fund the preparation of feasibility studies for other high-priority hydraulic infrastructure in the context of the river basin development plan framework.
These feasibility studies could be considered for financing in any other follow-on water resources projects in the region.
Technical assistance for project management and capacity building programs are essential for effective project implementation and has also been included in the financing plan.
It is expected that in the next two years, all dams and main canals and 20 per cent of command areas will be upgraded, the Hoa Binh instrumentation in Component 2 will be completed and Quang Hue river works from Component 3 will be finalized.
The International Development Association (IDA) Credit is being extended at standard IDA terms, with a 40-year maturity and a 10-year grace period.
For more information about the Vietnam Water Resources Assistance Project, please visit our web site at www.worldbank.org.vn.
Basic facts:
Name: Vietnam Water Resources Assistance Project
Total cost: approximately 176,2 million US dollar
WB contribution: approximately 157,8 million US dollar
Duration: 2004-2011
Implementing agency: Ministry of Agriculture and Development and Electricity of Vietnam
The project consists of four components, all figures in US dollar
– Irrigation Modernization (154,7 million)
– Dam safety Management (10,2 million)
– Thu Bon Basin Development (2,6 million)
– Project Management and Capacity Building (8,7 million)
Kilde: www.worldbank.org
