First city receives direct financial support from World Bank
18:14 | 18/05/2019
VGP - The World Bank (WB) Board of Executive Directors has approved a credit package worth US$125 million for Ho Chi Minh City to strengthen the institutional foundations for sustainable urban development.

This is the WB’s first budget support program for a locality in Viet Nam, marking a strategic shift in the cooperative activities of the WB from sector-specific investments to supporting cross-cutting policy and institutional reforms.

The program aims to eliminate institutional barriers to facilitate the largest city in Viet Nam to handle urgent challenges on urban management.

The city has been regarded as a crucial growth pole taking the lead in economic modernization and making contributions to 21% of the nation’s total GDP. These reforms are expected to bring benefits not only for the city but also the whole economy.

Successful management of rapid urban growth requires effective and integrated urban governance as well as adequate investment in urban infrastructure and service delivery, said WB Country Director for Viet Nam Ousamane Dione, adding that such interventions will have to be met within a constrained fiscal environment, reinforcing the urgent need for efficient resource mobilization and allocation.

The policy program is designed to launch integrated cross-sectoral reforms in most crucial sectors for urban development in Ho Chi Minh City, including land planning and use, fiscal management, waste management, public transport and economic competitiveness capacity.

The program is established on the basis of the three pillars including integrated and transparent spatial information for urban management, strengthened management of public assets and liabilities, and enhanced delivery of priority municipal services.

By Thuy Dung

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