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World Bank Helps Modernize Irrigation Schemes and Improve Dam Safety in Vietnam
 
Hanoi, March 31, 2004 –The World Bank’s Board of Directors yesterday approved a US$158 million credit for the Vietnam Water Resources Assistance Project to help raise farm household income and further reduce rural poverty in Vietnam. The project supports the development of national programs for irrigation modernization and dam safety. It also begins the long-term process of integrated development in the Thu Bon river basin.

Vice Minister of Agriculture and Rural Development Pham Hong Giang said, “Agriculture provides about a quarter of Vietnam’s GDP and exports, and employs two third of the labor force. Further crop diversification and increases in productivity require modern hydraulic infrastructure and more efficient delivery of irrigation and drainage services.”

Vice Minister Giang said that one of the Government’s current priorities is investing in the rehabilitation and upgrade of degraded irrigation schemes which can not ensure the designed services. A lot of schemes were built tens of years ago when technology was backward. The Ministry of Agriculture and Rural Development welcomes the World Bank’s strategy to assist the Government in accelerating this process through loans to development projects. More particularly, this Project will be the first one to modernize the irrigation systems in Vietnam. It is hoped that this Project not only bring capacity, knowledge and experience to Vietnamese practitioners but also in other operations and management activities in the irrigation sector.

“The Project will support key elements of Vietnam’s Comprehensive Poverty Reduction and Growth Strategy,” said Klaus Rohland, Director of the World Bank in Vietnam. “We help farmers with small-scale irrigation schemes who just came out of poverty to build on the gains made in 1990s. Irrigation agencies will be held accountable for their technical and financial performance. This is the best way to ensure sustainability of irrigation management.”

The Project has four components: Irrigation Modernization; Dam Safety Management; Thu Bon Basin Development and Project Management and Capacity Building.

The Irrigation Modernization component will renovate the infrastructure and management of the six largest irrigation schemes in Vietnam: Dau Tieng, Cau Son – Cam Son, Phu Ninh, Ke Go, Yen Lap and Da Ban. This component aims at improving irrigation and drainage services on approximately 130,000 ha.

The Dam Safety Management component will help establish a Dam Safety unit in MARD and address remedial safety works in at least three to-be-identified dams. It also finances the improvement of the Hoa Binh dam safety instrumentation system.

In the Thu Bon Basin, the Bank will fund the high priority Quang Hue River Flow Stabilization works that control flows of water to the cities of Da Nang and Hoi An. The component will help establish a basin-wide water management system, and fund the preparation of feasibility studies for other high-priority hydraulic infrastructure.

Technical assistance for project management and capacity building programs are essential for effective project implementation and has also seen included in the financing plan.

It is expected that in the next two years, all dams and main canals and 20% of command areas will be upgraded, the Hoa Binh instrumentation in Component 2 will be completed and Quang Hue river works from Component 3 will be finalized.

For more information about the Vietnam Water Resources Assistance Project, please visit our web site at www.worldbank.org.vn.

 

Basic facts

Name: Vietnam Water Resources Assistance Project
Total cost: approximately US$176.2 million
WB contribution: approximately US$157.8 million
Duration: 2004-2011
Implementing agency: Ministry of Agriculture and Development and Electricity of Vietnam
Contact: Mr. Pham Hong Giang, Vice-Minister 2 Ngoc Ha street, Hanoi, Vietnam
Telephone: (84-4) 7331311 Fax: (84-4) 7331311

Project components: The project consists of four components.
• Irrigation Modernization ($154.7 million)
• Dam safety Management ($10.2 million)
• Thu Bon Basin Development ($2.6 million)

For more information on the World Bank in Vietnam, please visit our Web site at www.worldbank.org.vn
 

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