The President proposed that the National Assembly Standing Committee consider signing the IBRD loan agreement for the Vinh City Urban Development Project.

On March 1, 2024, the President issued Document No. 1/TTr-CTN on the signing of a loan agreement between the Socialist Republic of Vietnam and the International Bank for Reconstruction and Development (IBRD) for the Priority Infrastructure and Climate-Resilient Urban Development Project in Vinh City, Nghe An Province.

Vinh ancient citadel moat was renovated through the Vinh ancient citadel moat upgrading and renovation project (component 2, of Vinh urban sub-project), with investment capital borrowed from the World Bank. Photo: Nhat Lan

The content of Submission No. 1/TTr-CTN clearly states that on January 30, 2024, the Government submitted Submission No. 52/TTr-CP tothe President on signing the Agreement for the Priority Infrastructure and Urban Development Project adapting to climate change in Vinh city, Nghe An province, which is a loan agreement between the Socialist Republic of Vietnam and IBRD to arrange a loan worth 129.6 million USD according to the loan conditions set forth by IBRD; Nghe An Provincial People's Committee is the governing body of the Project.

In the near future, Vinh River will be renovated and upgraded when the Vinh City Priority Infrastructure and Climate Change Adaptation Urban Development Project is implemented. (In the photo: Vinh River seen from above). Photo: Thanh Cuong

The mobilization of IBRD funds is aimed at helping the Project achieve its goals of improving urban resilience to climate change, minimizing flooding risks in major urban areas, enhancing urban management capacity to adapt to climate change, supporting the development of integrated infrastructure in Vinh city, and creating momentum for comprehensive socio-economic development for Vinh city and Nghe An province.

Regarding the legal basis, the Project has been approved by the Prime Minister in Decision No. 2212/QD-TTg dated December 28, 2021. The People's Committee of Nghe An province has approved the investment project in Decision No. 283/QD-UBND dated February 6, 2023. On June 15, 2023, the President decided to authorize the Negotiation Delegation led by the representative of the Ministry of Finance to negotiate with IBRD on the draft Agreement according to the process and procedures prescribed in the Law on International Treaties (Decision No. 713/QD-CTN).

Diagram of the Priority Infrastructure and Urban Development Project adapting to climate change in Vinh city, Nghe An province. Photo: Nhat Lan

Report No. 1/TTr-CTN also clearly stated the differences between IBRD regulations and Vietnamese law, including the origin of contractors for domestic bidding; and the mechanism for resolving complaints in procurement and bidding.

Based on the negotiation process between the Vietnamese Negotiation Delegation and IBRD, the Government, based on the opinions of the Ministry of Planning and Investment, submitted to the President: “The two above-mentioned differences as guided by IBRD will contribute to improving transparency in bidding for projects funded by IBRD and are not contrary to the principles of competition, fairness, transparency and economic efficiency according to the provisions of Vietnam's bidding law; therefore, these differences can be considered, accepted and do not indicate any adverse impacts on our politics, society, security and national defense when implementing these two contents”.

Illustrative image of detailed planning of roads and landscape on both banks of Vinh River (part of the Vinh River upgrading and improvement project). Photo: Nhat Lan

Pursuant to the 2013 Constitution of the Socialist Republic of Vietnam and Clause 1, Article 14 of the 2016 Law on International Treaties, at the request of the Government, the President requests the National Assembly Standing Committee to consider and comment on the signing of the Agreement with the International Bank for Reconstruction and Development (IBRD) for the Priority Infrastructure and Urban Development Project adapting to climate change in Vinh city, Nghe An province, which contains different contents regarding the provisions related to the procurement and bidding of the Project compared to the provisions of Vietnamese law.

Regarding the Project "Priority infrastructure and urban development adapting to climate change in Vinh city, Nghe An province", approved by the Provincial People's Committee in Decision No. 283/QD-UBND dated February 6, 2023 with a total investment of VND 4,502 billion, with Vinh City People's Committee as the investor.

Illustrative image of detailed planning of roads and landscape on both banks of Vinh River (part of the Vinh River upgrading and improvement project). Photo: Nhat Lan

The overall objective of the Project is to reduce the risk of flooding in the main urban area and enhance the urban management capacity to adapt to climate change in Vinh City. Support the development of integrated infrastructure and the development of climate change adaptation capacity in Vinh City, contributing to sustainable urban development and adaptation to climate change, creating momentum for comprehensive socio-economic development for Vinh City and Nghe An Province.

The specific objectives are: Reducing flooding and adapting to climate change for the city through activities to renovate and upgrade the drainage system. Improving environmental conditions, improving the quality of life of people through renovating and upgrading the Vinh River and the wastewater collection and treatment system. Strengthening the connection between the central area and developing areas and weak infrastructure, in order to create momentum for the city to develop through the construction of a number of connecting routes; increasing green space for the city through the construction of public space infrastructure, through the renovation of the Vinh River, the construction of Hung Hoa 2 Lake and park infrastructure. Strengthening the capacity of urban management to adapt to climate change, integrated and proactive flood control for Vinh city.

The project consists of 4 components: Component 1: Integrated investment in drainage, environmental sanitation and connectivity; Component 2: Expanding storage capacity to reduce urban flooding; Component 3: Upgrading and renovating Vinh River; Component 4: Developing systems and capacity to improve urban resilience.

The total land use area of the project is about 208 hectares. This is a group A technical infrastructure project; the main works are of level 1; the design life is 50 years for reinforced concrete construction works.

The renovation and upgrading of Vinh Ancient Citadel has contributed to positively changing the urban face of Vinh city. Photo: Nhat Lan

Regarding investment capital, including World Bank loan capital of 129.6 million USD (equivalent to 3,000 billion VND); counterpart capital: 1,502 billion VND (equivalent to 64.9 million USD). Vinh City People's Committee is responsible for arranging counterpart capital from Vinh City budget (according to Resolution No. 02/2021/NQ-HDND dated April 15, 2021 of the Provincial People's Council on regulations on a number of specific mechanisms and policies on finance - budget to support Vinh City's socio-economic development in the period 2021-2025).

Decision No. 283/QD-UBND of the Provincial People's Committee also clearly states that the project implementation progress is 6 years from the time the project is allocated capital by the competent authority.

Source: https://baonghean.vn/chu-tich-nuoc-de-nghi-uy-ban-thuong-vu-quoc-hoi-xem-xet-viec-ky-hiep-dinh-vay-ibrd-cho-du-an-phat-trien-do-thi-cua-thanh-pho-vinh-post285952.html