On September 19, the Government Office announced the Deputy Prime Minister’s agreement to stop using the World Bank’s loan for the Integration and Adaptive Development Project – Khanh Hoa Sub-project (IRDP) as proposed by the Ministry of Planning and Investment.
The Deputy Prime Minister assigned the People’s Committee of Khanh Hoa Province to take responsibility for arranging local budget funds and other legal capital sources to replace the World Bank’s loan. They will also have to carry out procedures for establishing and approving new projects following regulations. These projects aim to invest in the construction and upgrading of channels, rivers, and rainwater drainage systems, as well as sewage and solid waste treatment in the western area of Nha Trang City and Cam Ranh City, respectively. Additionally, the construction of the Vo Nguyen Giap to Nguyen Tat Thanh section of Ring Road 3 will be undertaken to ensure the timely implementation and completion of the project in accordance with legal regulations.
Previously, in a report submitted to the Prime Minister by the Ministry of Planning and Investment, the People’s Committee of Khanh Hoa Province stated that borrowing from the IBRD (a World Bank organization providing loans to middle-income developing countries) was no longer necessary due to two main reasons.
Firstly, on the World Bank’s side, there were differences in compensation and resettlement policies between Vietnam and the World Bank, leading to comparisons and conflicts among households and cooperative households, as well as policy exploitation and complaints by residents. Secondly, IBRD’s interest rates are no longer competitive, while the local budget has the capacity to balance investment in certain project components according to the roadmap and priority level.
On the Vietnamese side, the approval process for the pre-feasibility study report required the consultation of multiple agencies and units, resulting in prolonged timelines. Additionally, the adjusted master plan for Nha Trang City until 2040 has not yet been approved by the Prime Minister.
The unfinished riverbank of Cai River in Nha Trang
Currently, the Provincial People’s Committee has assigned the Provincial Project Management Board to organize the termination of the project preparation consulting contract and advise on the implementation plan for the project’s components using the provincial budget capital.
The Provincial Project Management Board has reported to the Provincial People’s Committee on the implementation plan for the project’s components using the provincial budget. The management board also proposed separating the project’s components into three independent projects to be implemented in accordance with the Law on Public Investment.
The project “Construction of riverbank and flood drainage system, sewage and wastewater treatment system in the western area of Nha Trang city” has a total investment of approximately VND 1,600 billion. The management board suggested that the Nha Trang City People’s Committee be the agency in charge of investment policy for this project, with an expected implementation period from 2024 to 2028.
The “Construction of Ring Road 3 connecting Vo Nguyen Giap Street to Nguyen Tat Thanh Avenue” project, with a total length of about 6km, is expected to cost around VND 1,900 billion. The proposed implementation period is from 2024 to 2027, with the Department of Transport as the agency in charge of investment policy.
The “Construction of sewage and wastewater treatment system in the central area of Cam Ranh city” project has a total investment of about VND 700 billion. The Cam Ranh City People’s Committee is suggested as the agency in charge of investment policy, with an expected implementation period from 2024 to 2028.
The total investment for these three projects is approximately VND 4,200 billion.
