Binh Duong Province's Water Environment Improvement Project

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Located in Viet Nam’s Southern Key Economic Region (SKER), Binh Duong province is highly industrialized and urbanized. In 2018, the GDP of Binh Duong province increased by about 9 percent, with average GDP per capita reaching VND 130.8 million (approx. US$ 5,640) per person. It is close to the economic hub of Ho Chi Minh City (HCMC) and home to several important industries. The annual budget revenue of the province is the fourth largest in the country, which has increased by 10 percent just from 2017 to 2018. As of 2019, Binh Duong Province was home to 2.4 million people, and is the seventh largest populated province in Vietnam, with one of the fastest growing populations. The province is an employment hub attracting migrant workers, resulting in the highest positive net migration rate within the country (20.04 percent). Overall, 79.87 percent of Binh Duong’s population lives in urban areas, more than double the national average of 31.3 percent. Urbanization has grown 41.4 percent in the 2014-2018 period compared to a national urban growth rate of 9.8 percent. But the province faces adverse impacts associated with inadequate wastewater management, which is placing hard-earned development gains at risk. Wastewater generation has increased substantially in Binh Duong province, but treatment capacity remains inadequate. In the urbanized areas of southern Binh Duong province the existing treatment capacity is only 40 percent of the current needs. Drainage is also inadequate in several areas, with relatively low levels of rainfall causing urban flooding. Municipal wastewater pollution, together with frequent urban inundation contribute to the spread of waterborne disease which particularly affect women, and other vulnerable groups, due to their disadvantageous social-economic conditions. Municipal wastewater pollution is a leading cause for water quality deterioration in the Dong Nai and Sai Gon Rivers, presenting a water security risk for downstream communities. The project areas are situated immediately upstream of the confluence of Sai Gon and Dong Nai rivers that are the source of drinking water for more than 10 million inhabitants in Binh Duong and Dong Nai provinces and Ho Chi Minh City. Furthermore, these two rivers provide ecosystem services to the SKER, which contributes 60 percent of the government revenues in Vietnam. Through investment in climate resilient infrastructure and institutional support activities, the project aims to help reduce threats from inadequate wastewater management and contribute to the long-term sustainable development and inclusive growth of the Binh Duong province. The project is structured in two components: (1) Wastewater infrastructure development and (2) Institutional strengthening and implementation support. Project investments under these components focus on expanding municipal wastewater collection and treatment capacity in southern part of Binh Duong province, namely, Thuan An City, Di An City and Tan Uyen Town. In addition, the project includes targeted activities to strengthening institutional and financial capacity for sustainable wastewater services. The project is designed to reach and benefit more than 566,000 residents of Thuan An, Di An and Tan Uyen in Binh Duong province by 2030. Moreover, project activities will contribute to broader programs for reducing pollution in the Dong Nai and Sai Gon river system which will provide multiple benefits to the people, the environment and economy of this important sub-region, including settlements directly dependent on water from the rivers. The project is fully aligned with the World Bank Country Partnership Framework (CPF) for Vietnam 2018-2022. It directly contributes to the achievement of Objective 5 of the CPF to “improve planning, management, and delivery of infrastructure and land in cities” and the first focus area to “enable inclusive growth and private sector participation.” Secondly, the project will support the achievement of Objective 10 of the CPF to “increase climate resilience and strengthen disaster risk management” under the third focus area to “enhance environmental sustainability and resilience”.