Phu Quoc Sustainable Water Management Project

dropped

Failure

Phu Quoc is the largest island of Vietnam, located in the Gulf of Thailand in Kien Giang Province in Mekong Delta region. It ishome to a booming tourism market and plays an important role in Vietnam’s development. Phu Quoc Island has an area of about 567km² and resident population of around 110,000 and is home to a vibrant and rapidly expanding tourism sector. Phu Quoc is earmarkedto become a ‘special administrative - economic unit’ with an aim to create growth poles and spillover effects for Kien Giangprovince and the broader Mekong Delta region. Moreover, Phu Quoc is expected to contribute to the regional economy as well as playan important role for Vietnam’s continued socio-economic development.Phu Quoc’s Development Master Plan leverages the island’sgeographical advantages, including rich natural environment and tourism potentials, helping to establish Phu Quoc as one of the keyholiday destinations in Vietnam. It aims to support the Island’s transformation to an international tourism destination and ascience and technology hub for the Southeast Asian region, balancing economic development with the protection of the environmentand preservation of historic monuments and cultural heritage. This Plan has enabled substantial investment over the past tenyears, helping to establish Phu Quoc as one of the key holiday destinations in Vietnam for national and international tourists.There are 70-80 flights per day with the Phu Quoc International Airport is being upgraded to handle 7.0 million visitors per yearby 2030. The tourist sector directly employs 36,000 workers and indirectly support jobs / livelihoods for a further 80,000 in2020.The tourism boom and rapid urban growth has however had its downside, including water pollution, urban flooding and waterscarcity – issues which are now placing hard earned development gains at risk. The Island’s civil infrastructure has not kept pacewith rapid tourism expansion, including the challenge of meeting high demands during peak periods. The existing water supplysystem for example, serves less than half Island current demands, storage is grossly inadequate placing the water balance in aprecious position of insecurity. In March 2020, the Phu Quoc district administration reported that the water level in Duong Dongstorage reservoir was less than 20% capacity - projected dry up by May, if the current drought conditions continue. As a result,of water security threats - many new tourist resorts have constructed their own independent supplies, including poorly regulatedgroundwater abstraction from sensitive coastal aquifers. The coverage and capacity of municipal drainage, solid waste andwastewater management systems is very low or non-existent and as a result unabated pollutant loads are now entering andcontaminating the sensitive natural environment. Such pollution, including plastic waste, is having visible and damaging effectson fragile marine eco-systems, now threatening the Island’s natural assets and intrinsic values for which the tourism industry wasfounded and has thrived to date. Once pristine, beaches are often littered with trash and the river waters such as Duong Dong havebecome foul with wastewater from the town (domestic, hotels and restaurants, fish source factories, etc.). Moreover, only two townshave some form of drainage and flood management system, which were developed ad hoc over time, such systems are overwhelmed -subject to blockage and localized flooding each rainy season. In 2019, flood waters reached up to 1.0m high in some areas.Wastewater from houses, hotels, resorts, restaurants and other commercial properties is mixed into the stormwater, spilling intopublic spaces, or conveyed in open drains to the beaches and the ocean – presenting a high risk to public health that could damagethe island’s reputation and its tourist industry.Furthermore, economic losses for Phu Quoc are projected to increase as weatherrelated development impacts intensify in the face of climate change. Increased rainfall intensity and frequency of extremerainfall events will further overload the drainage system causing more extensive flooding. Sea level rise will impact hydraulicperformance of the drainage system and increase the flood risks. A for the water supply sector there is a higher risk of depletionof water resources due to saline intrusion, rainfall decrease in dry periods and increased numbers of dry days and drought events.Such issues will have damaging economic impacts, creating a barrier to achievement of Phu Quoc Island’s long-term sustainabledevelopment goals. It is within this context that the Phu Quoc Sustainable Water Management Project has been conceived, with thefollowing objectives: (i) to increase Phu Quoc Island’s water security; (ii) to expand coverage of water supply and sewerageservices; and (iii) to reduce flooding and water pollution in selected areas. Under this project, water security will be enhanced through developing reservoir storage capacity and by preparing an integrated water resource management plan, which will guiderelevant and holistic practices including sustainable groundwater and demand management. Moreover, the project will supportresilient infrastructure for water supply, drainage, flood retention, wastewater and solid waste management, in targeted areas -critical for long-term sustainable development of the Island.More specifically the proposed project will: (1) enhance watersupply security in the context of climate change; by improving access to clean water services for about 70,000 people and about22,000 tourists in the project area; (2) mitigate flood impacts and risks and enhance climate change resilience for core urbanareas through flood control, drainage and green infrastructure; (3) minimize pollution of receiving water ways, drains and beachescaused by wastewater and garbage; (4) enhance the local agencies’ capacity in sustainable management and operation ofinfrastructure systems and service provision, and raise community awareness about use and protection of water resources and thenatural environment; and (5) support local tourism development through updating/developing tourism development strategies of KienGiang province, including Phu Quoc island district.Project design elements highlight the importance of applying an integratedapproach to the management of the Island’s natural assets, taking into consideration the full water supply and wastewater anddrainage cycle, addressing solid waste management, climate resilience and adapting to extent feasible nature-based solutions forurban flood management. Building capacity for sustainable management and operation of services and for community awareness inprotecting the environment will play a critical part in the overall approach. The project will embrace global best practice inareas that require innovation. The project has been structured under five components, that will support activities designed toensure that future development on Phu Quoc will balance economic growth with investments to conserve and protect the naturalenvironment and ensure resilience to climate change. The five components of the project are as follows: (1) Component 1:Construction of Cua Can Multi-purpose Reservoir; (2) Component 2: Expanding Water Supply Transmission and Distribution Networks;(3) Component 3: Wastewater Collection and Treatment, Solid Waste Collection, and Environmental Sanitation; (4) Component 4:Resettlement and Compensation; (5) Component 5: Project Management and Technical Assistance.

FY17 - Industry, Trade and Services,FY17 - Water, Sanitation and Waste Management

World Bank Group

Project

Airport, Water Supply and Storage, Manufacturing (Industrial), Biomass, Hotel, Commercial, Waste Processing and Treatment, Government, Residential