According to the WB Board of Directors, the US$682 million loan covers five projects: the Second Northern Mountains Poverty Reduction Project (US$150 million), the Central North Region Health Support Project (US$65 million),  Ho Chi Minh City Environmental Sanitation Project (US$90 million), the Red River Delta Rural Water Supply and Sanitation Project (US$ 65 million) and the First Power Sector Reform Development project (US$312 million).

The focus will be on enhancing the local authorities’ capacities for planning, implementing and managing infrastructure development projects.

The WB and other financial institutions admire the effectiveness of poverty alleviation in Vietnam, said WB Country Director for Vietnam Victoria Kwakwa, adding that these efforts have helped the Vietnam reach and sustain Middle Income Country status.

According to statistics compiled by the WB, the first Northern Mountains Poverty Reduction Project helped double annual incomes for participating households from VND 4.3 million (US$226) before the Project was implemented, to VND10.6 million (US$ 557) at completion in 2007. In the first phase of this project, more than 350,000 households benefited from improved health care, and over 118,000 households gained access to clean water, significantly improving local health standards.