Nghe An pledges to complete climate adaptation project ahead of schedule

Urgent action to accelerate progress

The Priority Infrastructure and Urban Development Project for Climate Change Adaptation in Vinh City, Nghe An Province, is a six-year project scheduled for completion and operation by 2030.

The project aims to reduce urban flooding risks in the city centre, strengthen urban management and climate resilience, and support integrated infrastructure development across the former Vinh City, now comprising Thanh Vinh, Truong Vinh and Vinh Hung wards.

Nghe An Province has identified the project as a key priority and a major opportunity to transform Vinh's urban landscape, thereby attracting major investors to the province. However, various obstacles have delayed implementation, pushing up the cost of the billion-dollar project, including the funding provided by the World Bank (WB).

Recognising the project's importance, provincial leaders have held a series of meetings to review progress, assess difficulties and direct the agencies involved to accelerate implementation.

At a meeting on October 2, 2026, chaired by Vo Trong Hai, Chairman of the Nghe An Provincial People’s Committee, Nguyen Ngoc Phong, Vice Chairman of Truong Vinh Ward and former Director of the Vinh City Project Management Board for Investment and Construction, provided an overview of the project.

“The initial proposal for this project was prepared in March 2019. At the time, the city was also making considerable efforts to advance the signing of the agreement. An official development assistance (ODA) project of this kind requires consultation with numerous ministries and agencies. In this case, 12 to 13 ministries and ministerial-level agencies were involved. The project has been significantly delayed compared with the original schedule, with the COVID-19 pandemic being one of the contributing factors,” he said.

Mr. Dang Duc Cuong, Senior Urban Specialist and Project Leader, explained that the project’s construction and equipment costs are funded by the World Bank, while local funding covers site clearance, compensation, consultancy services and project management. He stressed that when changes arise in counterpart funding or World Bank financing, the parties involved must discuss them carefully and must not make unilateral adjustments.

As the project owner, the Nghe An Agriculture and Environment Project Management Board has worked with the design consultant and the provincial Land Fund Development Centre to review and recalculate construction and equipment costs, as well as compensation, support and resettlement expenses exceeding the approved investment level.

Two options have been proposed: Under the first option, all planned investment components would be retained. This would bring the total project cost to VND 6,251 billion, an increase of VND 1,749 billion.

The second option involves deferring the first section of the Vinh River project to make use of any savings from the bidding process, if sufficient funds are available, or transferring the work to a newly proposed project. Both approaches would use World Bank funding and comply with relevant financial, procurement, environmental and social safeguards. Under the second option, the total investment would increase by VND 1,035 billion. The project management board has assured the provincial government that this option would require adjustments only to the investment policy and project approval, without amending the loan agreement.

Pledging to finish ahead of schedule

As of early October 2026, construction was underway under three civil works packages.

Package CW1.3 covers the extension of Cao Xuan Huy Road and is being implemented by a consortium comprising Thanh Cong Construction Consulting Co., Ltd. and 575 Construction and Installation Investment JSC. The contractor is currently demolishing the old bridge and casting drainage structures.

For Package CW2.3, which covers the construction of the Hoi Chua pumping station, the parties involved are urgently completing the necessary procedures ahead of construction.

Mr. Vo Trong Hai, Chairman of the Nghe An Provincial People’s Committee, has called on all relevant agencies and local authorities to take urgent action and demonstrate a strong sense of responsibility in resolving persistent bottlenecks in the key project, particularly those related to site clearance.

“The most important thing is that site clearance for all 13 bidding packages must be completed this year. Any locality that fails to meet this requirement will have to explain itself directly to the Chairman of the Provincial People’s Committee. The project is scheduled for completion by 2030, but it must be finished before then,” he said.

With strong political commitment, Nghe An Province is confident that the Priority Infrastructure and Urban Development Project for Climate Change Adaptation in Vinh City can be completed ahead of schedule. Once completed, the project is expected to significantly improve Vinh's urban landscape through comprehensive infrastructure upgrades and help alleviate the chronic problem of localised flooding. These improvements are also expected to lay a solid foundation for attracting major businesses and investors to the province.

The Priority Infrastructure and Urban Development Project for Climate Change Adaptation in Vinh City, Nghe An Province, is expected to directly benefit 250,000 residents in the urban core by reducing flood risks and improving public health. Upon completion, the project will connect 30,000 households to newly built or upgraded secondary and tertiary drainage systems. It will also halve the time needed to restore homes after flooding, including the time required for household clean-up.