MFF: Water Sector Investment Program

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The Program will assist water supply companies in Viet Nam to strengthen their business practices and improve their performance. The Program will also support a capital investment program in water companies and cofinance the National Non Revenue Water (NRW) Program. The Development Program will utilize a MFF with a view to providing longer-term support to the institutional reform of the Viet Nam Water Sector for the next ten years. The MFF will be used to leverage parallel cofinancing, and most importantly to prepare access to commercial finance and increased private sector participation. The funds will be made available in tranches through loans. Four pilot cities, Da Nang, Hai Phong, Ho Chi Minh City (HCMC) and Hue were identified for project preparation in 2008. The first Periodic Financing Request (PFR1) of the MFF will only cover HCMC. Subsequent tranches would finance part of the National NRW Program and investment sub-programs for water companies in the other three cities, as well as other Vietnamese water companies.