Effective use of ODA loans to facilitate green growth

Taking people as the center, focusing on development, green growth is the goal prioritized by Binh Duong as calling for high-tech projects, protecting the environment; the province is also determined to implement projects to improve the water environment for the sake of sustainable development. According to the World Bank's assessment, Binh Duong has effectively used ODA loans for environmental protection and climate change combat.

Provincial leaders and some agencies take photos with the World Bank’s delegation.

Sustainable development

On June 5, Nguyen Van Danh, Vice Chairman of Binh Duong Provincial People's Committee, and leaders of some departments and branches had a meeting with the delegation of World Bank (WB) led by Mr. Wempi Saputra, Executive Director of WB Office.

At the meeting, Mr. Nguyen Van Danh informed about the socio-economic development results of the province. With an open and attractive investment environment, in recent years, Binh Duong has been one of the leading provinces and cities nationwide in FDI attraction. Over the first 6 months of 2023, the province attracted US$ 974 million, including 44 new projects, 22 capital adjustment projects and 68 capital contribution projects.

Mr. Danh added that the province has effectively utilized ODA loans over the past time. Specifically, the provincial water environment improvement project has a total capital value of more than US$310 million, of which the WB loan is 230 million USD, counterpart capital of the provincial budget is US$80 million. In the first 6 months of 2023, Binh Duong province's water environment improvement project was submitted by the Ministry of Finance to the Prime Minister for permission and authorization to negotiate and sign an agreement with the WB sponsor.

There are still some problems in funding projects in terms of procedures for negotiating and signing a lengthy loan agreement. Some projects have not been able to carry out the next steps due to lack of agreement from sponsors such as drainage and wastewater treatment project in Ben Cat town. The province has proposed paying attention to and supporting the project implementation from the Finnish public investment credit (PIF) program. The above project will contribute to preventing flooding and enhancing the adaptability to climate change along the Saigon River in the section through Binh Duong. "Binh Duong believes that with funding for clean water supply and wastewater treatment projects to improve the environment, it will contribute positively to the province's goals of sustainable development and green growth", said Nguyen Van Danh at the meeting.

Prioritize environmental protection projects

Mr. Wempi Saputra said that regarding the implementation of WB-funded projects, there are still some problems, which is the reason why the funding project to improve the water environment for Binh Duong province has not reached the planed progress. Mr. Wempi Saputra said that during his working trip with the Government and ministries of Vietnam, the WB believed that obstacles would be removed to soon implement projects in Vietnam, including Binh Duong.

The World Bank delegation visit Tan Hiep 2 Water Plant with a capacity of 30,000m3/day and night, funded by the World Bank, to ensure clean water supply for Binh Duong Industrial - Service - Urban Complex. 

Also according to Mr. Wempi Saputra, currently developed countries are in need of preferential capital for socio-economic development. The WB has the strength in analyzing capabilities and proposing related projects, and also wishes that the two sides continue discussing to solve difficulties in the implementation process. As for water projects, the World Bank attaches great importance to it and considers it a global challenge. Therefore, water projects in Binh Duong are a typical example for the WB to consider financing. The projects are implemented with the common goal of controlling environmental pollution caused by urban wastewater, increasing people's access to services to improve wastewater quality, protect water sources, and protect public health.

Lam Minh Ky, Deputy Director of Provincial Wastewater Project Management Board, informed that the provincial water environment improvement project will contribute to reducing environmental pollution caused by urban wastewater in some areas of South Binh Duong, including: Tan Uyen City, Thuan An City and Di An City. Building a domestic wastewater collection network for about 54,000 households. “Currently, the project is preparing to negotiate an agreement with the WB donor. At the same time, we are conducting survey and measurement of site clearance for Tan Uyen Wastewater Treatment Plant in Uyen Hung ward. It is expected that in 2023, about 7.6 hectares of land will be acquired with 27 households", Mr. Ky said.

Wempi Saputra, Executive Director of the World Bank Group Office: The World Bank will give priority to funding projects that are sustainable and protect the environment. I believe that, with working results of the WB and the Government, ministries and branches as well as Binh Duong province, both sides will work together to remove difficulties for the water environment improvement project in Binh Duong province financed by the WB will be signed and executed as soon as possible.

Tran Chien Cong, General Director of Binh Duong Water - Environment Corporation (Biwase); Through government-guaranteed and non-guaranteed ODA loans, Biwase has used the loan for right purposes, which are projects of expand the clean water supply network for people in remote and isolated areas, and projects on collection and treatment of domestic wastewater in the province. Currently, Biwase has prepared construction site, equipment, vehicles and human resources to carry out the construction of related projects.

The project to improve the provincial water environment with the scale of building a wastewater treatment plant with a capacity of phase I of 20,000 m³/day and night in Tan Uyen city; build and increase the capacity of existing wastewater treatment plants in Thuan An city and Di An city with an additional treatment capacity of 20,000 m³/day and night for Thuan An city and 20,000 m³/day and night for Di An City.

Reported by Minh Duy - Translated by Ngoc Huynh