HA NOI, VIET NAM — The Asian Development Bank (ADB) is extending a $100 million loan to improve the urban environments and climate resilience of Dong Hoi and Hoi An cities, important tourist centers which suffer from infrastructure gaps, pollution problems and exposure to natural disasters along the country’s vulnerable North Central and South Central coastal regions.

“Dong Hoi’s infrastructure was largely destroyed by bombing in 1972 and rebuilding has been slow, while Hoi An, a UNESCO World Heritage site, needs new investment to cope with increasing levels of garbage and wastewater as visitor numbers grow,” said Eri Honda, Principal Urban Development Specialist in ADB’s Southeast Asia Department. “This assistance will provide support for overdue urban service improvements at these two cities, upgrade their physical environments, and help them cope better with climate-change related calamities.” 
The project will support new urban development for the Bao Ninh peninsula and along the Co Co river that incorporate climate-proofing features, such as green riparian buffer zones to retain water during floods, infrastructure to protect the coastal dune complex from erosion, as well as protection of the water reservoir from saline intrusion. Measures for integrated flood management will be taken to increase the storage capacity of the existing reservoir, to establish a forecasting and warning system, and to create a flood evacuation route. 

Staff at service agencies will get training and support in urban management, while awareness programs on health, environment and climate change will be provided for city residents. The project is the first urban development project for provincial governments that uses ADB loan funds re-lent from the central government. 

Along with the loan from its ordinary capital resources, ADB will also administer a $4 million grant from the Urban Climate Change Resilience Trust Fund, financed by the Rockefeller Foundation and the governments of the United Kingdom and United States. The Government of Viet Nam will provide counterpart support of over $40 million equivalent. The project will run for 7 years with an estimated completion date of end December 2022.

ADB, based in Manila, 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 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.

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