VN-Local Development Investment (LDIFP)

closed

The development objective of the Local Development Investment Fund (LDIF) Project for Vietnam is to improve effectiveness of qualified local development investment funds in leveraging private sector financing for municipal infrastructure, and to strengthen their financial and technical capability, and their capability for social and environmental safeguards management, through the operation of a credit facility to support the investments of such investment funds in eligible local development subprojects. There are two components to the project. The first component of the project is investment capital. This component provides line of credit to the Ministry of Finance for its Project Management Unit (PMU) to manage and to on-lend to qualify LDIFs for investment in cost recovery oriented municipal infrastructure subprojects in partnership with the private sector. The project will use the International Development Association (IDA) credit to invest in cost-recovery oriented municipal infrastructure investments in partnership with the private sector. The project will also work with the provincial governments to identify investment needs in their respective provinces, as described in their master plans that can be financed in partnership with the private sector. The second component of the project is project implementation support. This component will support the PMU in the development of its regulatory and institutional capacity in the following areas: i) establishment, capacity-building, and operational support of the PMU organization; ii) monitoring and selection of qualified LDIFs; iii) analysis of LDIFs' subprojects; and iv) monitoring of social and environmental safeguards compliance.