WB support for central highland and coastal region projects

$300 million in financing to go towards road improvements in central highlands and forest management in coastal cities and provinces.

The World Bank’s Board of Executive Directors has approved financing for two projects in Vietnam: the Central Highlands Connectivity Improvement Project and the Forest Sector Modernization and Coastal Resilience Enhancement Project.

The $300 million in financing will go to improving transport connectivity in the countryside and protecting forests in eight coastal cities and provinces.

“Investing in environmentally-sustainable projects is investing in the future of Vietnam,” said Mr. Ousmane Dione, World Bank Country Director for Vietnam. “The World Bank fully supports Vietnam’s efforts to strengthen its resilience to climate change and to serve the needs of communities and businesses. These projects are vivid examples of our new Country Partnership Framework in action, a framework that strengthens Vietnam’s sustainability and economic development in the long term.”

Half of the funding will be channeled to the connectivity improvement project, which aims to upgrade 142 km of National Highway No.19 and strengthen safety and resilience to natural disasters. Communities in Binh Dinh and Gia Lai provinces will benefit from easier access to markets, reduced travel time, and better road safety. The upgraded highway is expected to serve up to 6,200 light motor vehicles per day.

The remaining $150 million will support the management of coastal forests in Quang Tri, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Thua Thien Hue, and Quang Ninh provinces and Hai Phong city. More than 900 communities in 257 communes in the eight cities and provinces will benefit from the jobs created from the rehabilitation of degraded forests, the protection of existing forests, and the ensuing opportunities for eco-tourism and aquaculture.

Financing for the two projects comes from the International Development Association (IDA), the World Bank’s fund for low-income countries.

by Doanh Doanh / VET