Over 740 million USD to help the Mekong Delta adapt to climate change

In line with the criteria for climate change adaptation

Building on the achievements of the Integrated Climate Resilience and Sustainable Livelihoods Project in the Mekong Delta (WB9), the Ministry of Agriculture and Rural Development (MARD) along with 10 provinces in the Mekong Delta (excluding Can Tho City, Long An, and Vinh Long) are continuing the preparation of the Mekong Delta Integrated Climate Resilience and Transformation Project (MERIT - WB11).

To implement this, MARD and the participating localities have developed 11 project proposals.

On August 12, Deputy Minister of Agriculture and Rural Development, Nguyen Hoang Hiep, held a meeting with representatives from various ministries, sectors, and the 10 provinces involved in the MERIT - WB11 Project to review progress and ensure that project proposals are completed according to the planned schedule.

For the project proposal of the Ministry of Agriculture and Rural Development, which was approved by the Prime Minister on March 18, 2024, under Decision No. 233/QD-TTg, Soc Trang province will receive investment for the construction of two sluice gates: Bai Xau (in My Xuyen district) and Dai Ngai (in Long Phu district).

Mr. Vuong Quoc Nam, Vice Chairman of the People's Committee of Soc Trang province, assessed that the investment in these two works will contribute to better control of saltwater intrusion from the My Thanh River and the southern bank of the Hau River. Combined with other already invested projects, this will help Soc Trang complete its water control project cluster, enhancing climate resilience and supporting agricultural production transformation.

Currently, the Ministry of Agriculture and Rural Development is conducting data collection and research for the preparation of a pre-feasibility report, which is expected to be submitted to the Prime Minister for approval in October 2024.

As for the MERIT Project proposals from the 10 provinces in the Mekong Delta, after receiving Document No. 2091/BKHDT-KTDN summarizing feedback from relevant ministries and sectors, the localities have made adjustments.

So far, five provinces—Tra Vinh, Soc Trang, Bac Lieu, Ben Tre, and Ca Mau—have completed and resubmitted their project investment proposals as required. The remaining localities are continuing to update and resubmit by August 15, 2024.

According to Announcement No. 366/TB-VPCP dated August 7, 2024 from the Government Office, conveying the conclusion of Deputy Prime Minister Tran Luu Quang, the Ministry of Planning and Investment is required to coordinate with the Ministry of Agriculture and Rural Development to review the opinions of the Ministry of Natural Resources and Environment to determine the suitability of the MERIT - WB11 Project with the criteria for sustainable development of the Mekong Delta region, adaptation to climate change (CC) as per regulations, and submit to the Ministry of Finance before August 15, 2024.

Mr. Nguyen Tuan Quang, Deputy Director of the Department of Climate Change (Ministry of Natural Resources and Environment), said that previously the Ministry of Natural Resources and Environment had sent a document to the Ministry of Planning and Investment to identify 4 criteria for adaptation to climate change. This is the basis for reviewing the MERIT Projects of the 10 provinces in the Mekong Delta region.

Firstly, activities to enhance the resilience of natural and social systems; minimize the negative impacts of climate change; take advantage of opportunities brought by climate change.

Secondly, in line with the overall action program to implement Resolution 120. Thirdly, in line with the national plan for climate change adaptation, and finally, included in the list of priority projects and tasks of the province to implement Resolution 120.

Based on the review of the content of the MERIT Project proposals, the Ministry of Natural Resources and Environment has agreed and confirmed that the projects are in line with the criteria for climate change adaptation.

Accelerate the progress

The MERIT-WB11 project has a total funding of USD 741 million (approximately VND 17,759 billion). This includes USD 545 million in loans from the World Bank, USD 179 million in counterpart funding, and approximately USD 17 million in grants.

Of this, the project under the Ministry of Agriculture and Rural Development (MARD) has a total investment of USD 274 million (equivalent to nearly VND 6,580 billion). The 10 MERIT projects in the Mekong Delta provinces have a total investment of USD 467 million (around VND 11,180 billion).

The Prime Minister has approved the application of a financial mechanism in which the central government budget will allocate 90% of the loan capital, while the local governments will be responsible for repaying 10% of the loan capital in accordance with regulations on re-lending ODA loans and foreign concessional loans.

MERIT-WB11 is considered the largest-scale project of its kind to date. The project focuses on both structural and non-structural solutions to enhance the climate resilience of agricultural production and rural communities in the Mekong Delta provinces.

Deputy Minister of Agriculture and Rural Development Nguyen Hoang Hiep evaluated WB9 as a successful project by the World Bank (WB) in Vietnam, with the potential to become a model replicated in many other countries around the world.

Following this success, MERIT-WB11 was prepared relatively quickly and has been highly regarded by the WB for its approach. This achievement is due to the efforts of the 10 provinces in the Mekong Delta, as well as the close coordination between the relevant ministries and the Ministry of Agriculture and Rural Development.

To ensure the project’s progress, Deputy Minister Nguyen Hoang Hiep requested that the 10 provinces in the Mekong Delta submit official documents to the Government Office and relevant ministries by August 15.

The criteria for climate change adaptation and sustainable development need to be reaffirmed and reassessed, ensuring compliance with the four adaptation criteria set by the Ministry of Natural Resources and Environment as mentioned above.

Additionally, a review must be conducted to confirm the total investment amount and the local government’s ability to provide counterpart funding for the project, as well as the room and ceiling for re-lending to ensure the 10% requirement.

For the Ministry of Agriculture and Rural Development (MARD) project, Deputy Minister Hiệp has requested the Central Management Board of Irrigation Projects to accelerate the process and complete the pre-feasibility study report within 2024. MARD must lead and coordinate with localities to implement the contents. By 2025, MARD’s project and the 10 MERIT projects of the localities should be able to sign agreements with the World Bank (WB) as committed.

According to the Central Management Board of Irrigation Projects, the MERIT-WB11 project will have three components. Component 1 focuses on strengthening institutions and information systems. Component 2 involves investing in regional climate resilience infrastructure. Component 3 aims to promote livelihood diversification and rural economy adaptation to climate change.

The MERIT-WB11 project is expected to directly and indirectly benefit approximately 960,000 hectares and 920,000 households.