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The project titled Priority Infrastructure and Urban Development for Climate Change Adaptation in Vinh City, Nghệ An Province, was approved by the provincial People’s Committee under Decision No. 283/QD-UBND dated February 6, 2023, with total investment of about 4,502 billion VND. Of this amount, a loan from the International Bank for Reconstruction and Development (IBRD) totals about 129.6 million USD, with the remainder funded domestically.
The loan agreement No. 9582-VN was signed on August 2, 2024, and takes effect from December 2, 2024 to December 2, 2030, setting an approximately six-year implementation period with requirements on progress and disbursement.
The project includes four main components: drainage and environmental sanitation; expanded storage capacity to reduce flooding; upgrading and improving the Vinh River; and strengthening urban management. Key works mentioned include upgrading the drainage system, constructing a stormwater reservoir, reshaping the Vinh River, and developing urban green space.
Implementation will take place in Thành Vinh, Trường Vinh and Vinh Hưng wards, with the aim of reducing flood risk in the central urban area while improving climate adaptation and developing urban infrastructure in a coordinated and sustainable manner.
On April 17, 2026, during a meeting between Nghệ An Province’s People’s Committee and a World Bank (WB) delegation, representatives reported progress on the project packages. At present, 2 of 6 civil works packages in Phase 1 are in the bidding stage. The next two packages are expected to begin bidding in May 2026, while the remaining packages are planned for implementation in Q3 2026.
For Phase 2, detailed designs are being finalized to support surveys and land clearance, with bidding planned for late 2026.
The World Bank team identified land clearance as the main bottleneck, citing the large area requiring recovery and the involvement of many households and existing infrastructure. In particular, Trường Vinh ward accounts for about 80% of the project’s land clearance, creating significant pressure on local authorities to meet deadlines.
The WB urged Nghệ An to complete land compensation valuation and approval by April 30, 2026. Compensation payments for priority Phase 1 packages must be completed by December 30, 2026, and the remaining packages must be completed by June 2027.
For Phase 2, the WB recommended that inventory and land recovery planning begin as soon as construction drawings are completed by the end of June 2026. It also emphasized that resettlement arrangements and relocation of residents should proceed in parallel to avoid delaying the overall schedule.
A specific item highlighted was Tran Nguyên Hãn Street in Package CW1.1, where agreement on a tomb relocation plan should be reached before April 30, 2026 to prevent procedural delays.
Phó Chủ tịch Nghệ An Nguyễn Văn Đệ stated agreement with the WB’s proposals and directed localities and sector agencies to coordinate closely and remove obstacles to land clearance.
The Nghệ An Project Management Board for Irrigation and Rural Development projects was assigned to coordinate and expedite project components and ensure implementation progress.
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