The Asian Development Bank (ADB) and the Ha Giang, Vinh Phuc, and Thua Thien Hue Provincial People's Committees have signed project agreements totaling $223.87 million for the Secondary Green Cities Development Project.
The project will support environmentally-sustainable and inclusive development in the provincial capitals of Ha Giang, Vinh Yen and Hue, to enhance their economic competitiveness.
Because of rapid urbanization, almost all 31 million people living in Vietnam's cities are facing emerging socioeconomic and environmental challenges. Unlike the five centrally-administered cities, the development of secondary cities is lagging behind. Many communities in these cities are becoming increasingly vulnerable to climate change and disaster risks.
Secondary cities' slow development not only prevents them from contributing to the country's socioeconomic growth but also reduces job opportunities and results in worsening livable environments for local people and migrant workers. Responding to these cities' complex socioeconomic and financial constraints requires strategic support in upstream city planning and the identification of effective investments.
The government and the ADB jointly selected Ha Giang, Vinh Yen, and Hue as demonstration cities because they represent different socioeconomic characteristics, development constraints, and geographic locations.
Total project investment includes $3 million in grant financing from the Global Environment Facility (GEF) and $3 million from the Urban Climate Change Resilience Trust Fund (UCCRTF), which is supported by the Rockefeller Foundation and the governments of Switzerland and the UK. Technical assistance accompanying the project totals $12.8 million, of which $10.8 million will be financed by the GEF and $2 million by the UCCRTF.
"While demonstrating green city development, the project will also help formulate a regulatory framework for sustainable and resilient cities that will be scaled up for nationwide secondary green city development in Vietnam and pilot test disaster risk financing for Hue," Mr. Sidgwick added.
Expected to be completed in December 2023, the project will help the three cities improve green and resilient urban infrastructure services and scale up climate adaptation that will benefit about 116,000 households, including about 6,100 poor and near-poor households. For all sub-projects, the provincial people's committees, as executing agencies, will strengthen institutional capacity for urban development management.
Based in Manila, the ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally-sustainable growth, and regional integration. Established in 1966, it is owned by 67 members, 48 of which are from the region. The ADB's operations totaled $32.2 billion in 2017, including $11.9 billion in co-financing.