A view of Can Tho City. The Asian Development Bank has proposed developing a smart and energy efficient city project in the Mekong Delta city – PHOTO: VNA

HCMC – The Asian Development Bank (ADB) has proposed developing a smart and energy efficient city project (SEECP) in the Mekong Delta city of Can Tho, with total investment of some US$67.3 million, or VND1.6 trillion.

The investment capital will be spent on developing smart city infrastructure, lighting systems with smart technology and public buildings, it was announced at a meeting between the municipal government and ADB on April 6.

The project is aimed at saving energy, reducing carbon emissions and improving the socioeconomic situation related to public safety and welfare, the local media reported.

Au Minh Tuan, senior specialist on energy development at ADB, said that the regional lender was introducing SEECP in six provinces and cities in Vietnam, including Hanoi, Quang Ninh, Quang Nam, Danang, Lam Dong and Can Tho.

As for the SEECP in Can Tho, ADB proposed two components---smart lighting and smart building ----that will cost some VND1.3 trillion and VND282 billion, respectively.

The project's finance will be sourced from an official development assistance (ODA) loan of US$32.9 million from ADB and another ODA loan of US$7.07 million from the Green Climate Fund (GCF), a non-refundable aid of US$7.07 million and the city’s reciprocal capital of US$20.2 million.

ADB will manage the GCF’s funding sources in this project. Can Tho City, the investor of the project, will borrow ODA loans, while the Ministry of Finance will, on behalf of the Government, sign agreements for borrowing and using the support from ADB and GCF.

Work on the first phase of the project covering purchase and construction will start from April 2022 to December 2025.

Responding to the bank’s proposal, Nguyen Van Hong, vice chairman of Can Tho, said that the city would consider the SEECP project and capital sources for the investment.

Hong also assigned the municipal Department of Construction to consult with other departments and relevant agencies over the two components and then report the results to the municipal government.