The second phase of the HCM City Nhieu Loc-Thi Nghe Environmental Sanitation Project could benefit from a public private partnership (PPP) arrangement under an agreement signed this week.

Workers dredge Nhieu Loc Canal in HCM City. The Nhieu Loc-Thi Nghe Environmental Sanitation Project aims to improve the drainage system in the area. — VNA/VNS Photo Thanh Phan

Representatives of the HCM City People\'s Committee, International Enterprise Singapore and the World Bank signed a Memorandum of Understanding (MoU) under which the municipal administration will be helped to "explore the options for a viable PPP business model."

"Phase 2 will build an inceptor system for collecting all the domestic wastewater from the Nhieu Loc- Thi Nghe catchment area and District 2," said Nguyen Phuoc Thao, chair of the city administration\'s Steering Committee for Urban Flood Control.

"It will also build a wastewater treatment plant with an estimated capacity of 800,000 cubic meters per day," he said.

The feasibility study for Phase 2 was expected to be completed by the year-end, Thao said.

IE Singapore, a government agency that "helps foreign companies and Singapore-based enterprises for mutual development," will work with the bank to select a qualified consulting firm to conduct the PPP feasibility study for the project.

The project aims to improve the drainage system in HCM City\'s Nhieu Loc-Thi Nghe catchment area. Main activities in the second phase of the project includes an interceptor and wastewater treatment plant.

The selected consultant will explore options for the private sector to be involved in the project, "potentially reducing the government\'s financing burden in infrastructure investment," the release said.

"Viet Nam\'s Social Economic Development Strategy and Socio-Economic Development Plan identify removing infrastructure bottlenecks as one of the country\'s top priorities," said Alain Barbu, Manager of Portfolio and Operations, World Bank Office in Viet Nam.

Pointing out that HCM City was highly vulnerable to tidal flooding and climate change impacts, he said sustained, large investments in critical infrastructure was needed to sustain competitiveness and provide a high quality of life for its citizens.

He noted that Phase 1 of the project, to be completed this year, "has already begun to deliver positive impacts to 2 million residents of the city in reduced flooding and improved collection of waste water."

Tan Soon Kim, Group Director for Southeast Asia, International Enterprise Singapore said the MoU was a milestone for the relationship between Singapore and Viet Nam.