Driving the Climate-Resilient Urban Development Project in Hoa Binh Urban Area

On the afternoon of May 28, Mr. Dinh Cong Su—Member of the Provincial Party Committee and Vice Chairman of the Provincial People’s Committee—received and held a working session with the French Development Agency (AFD) regarding the Project on "Climate-Resilient Urban Development in Hoa Binh Urban Area, Phu Tho Province." Attending the session were leaders from various provincial departments and sectors: Finance, Agriculture and Environment, Construction, Foreign Affairs, the Office of the Provincial People’s Committee, and the Hoa Binh Regional Project Management Board (PMB).

Vice Chairman of the Provincial People’s Committee Dinh Cong Su addresses the working session.

The Project on “Climate-Resilient Urban Development in Hoa Binh Urban Area, Phu Tho Province” is owned and invested by the Hoa Binh Regional PMB. The capital structure is leveraged via loan financing from AFD, coupled with non-refundable grant aid from the Water and Natural Resources Management Fund (WARM Fund).

The project will be deployed across Hoa Binh, Tan Hoa, and Ky Son wards with an aggregate capitalized budget of over 1,495 billion VND, spanning an execution cycle of 4 years from the date the loan agreement enters into force. The initiative aims to upgrade urban drainage infrastructure, strengthen water regulation and drainage capacities, and elevate local climate resilience and recovery capabilities, with a particular focus on mitigating flooding and its cascading impacts.

Mr. Hugo Pierrel, Deputy Director of AFD Vietnam, addresses the working session.

During the dialogue, the AFD delegation requested the Phu Tho Provincial People’s Committee to reach a consensus on the comprehensive project preparation timeline. This synchronization is mandatory to secure the loan approval conditions and sustain the preferential financial terms of the first half of 2026. Under this proposed timeline, Phu Tho Province shall formally approve the loan proposal before June 20, 2026; AFD shall formally approve the financing package on July 7, 2026; and the formal investment policy approval shall be secured in July 2026.

AFD representatives also exchanged views to clarify the appraisal and project approval timeline, dismantled bottlenecks emerging during the preparation phase, and evaluated technical assistance (TA) requirements to serve upcoming negotiations and the signing of formal financing agreements.

On behalf of Phu Tho Province, local authorities requested AFD to consider and align the project execution timeline, while continuously maintaining the loan’s financial conditions as conveyed by AFD in Official Letter No. D042 dated January 30, 2026. The province also emphasized strict adherence to updated statutory regulations governing programs and projects funded by Official Development Assistance (ODA) and foreign preferential loans.

The panoramic view of the working session.

Furthermore, Phu Tho Province petitioned AFD to extend continuous interest, deliver support, and swiftly communicate the donor’s technical requirements regarding the project’s Feasibility Study Report (FSR) dossiers (if any). This will allow all stakeholders to collaborate and agree on an appropriate deployment matrix, securing the overall project timeline. The province also welcomed continuous technical assistance from AFD during the preparation and implementation phases.

Concluding the session, Vice Chairman Dinh Cong Su expressed his high appreciation for the working visit of the AFD delegation and voiced his absolute consensus on AFD’s proposals. He mandated the Department of Finance and the Hoa Binh Regional PMB to urgently coordinate with the Ministry of Finance and the Office of the Government to advance the province’s loan proposal. Concurrently, he requested AFD to actively partner with the province in finalizing dossiers and institutional procedures, thereby accelerating progress to guarantee that the project secures formal approval within the projected timeline.

Le Hoang