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 Financial analysis

The projection of financial resources was attempted on a premise that national budget would increase almost in proportion to the Gross Domestic Product (GDP) growth rate (10-12%/year) and accordingly the Hanoi development expenditures would also increase. The projected figures are shown in Table 3.20 below.

Table 3.20: Projection of Hanoi's development expenditures
Item 2000 2005 2010
Hanoi Total Development Expenditures 343 635 1,081
Allocation to Drainage/Sewerage Sector 34 64 130
(Unit: US$ million equiv.)

The required fund for the implementation of the plans proposed in the Master Plan, estimated in Table 3.19, is generally within the range of the budgetary resources projected in the above table, though there may be some surplus or shortage each year. Hence, the proposed implementation plan is deemed to be practical.

Environmental impact assessment

Drainage and sewerage development, in particular the latter, aims at improving living standards and water quality, and hence is regarded to be the development which would improve the city's environment (Photo 3.3). The plans formulated in the Master Plan are in general in line with this concept and will not cause any particular environmental problems.

Photo 3.3: Kimnguu River under construction

Overall, the To Lich River Basin Drainage Project will contribute to the improvement of the City's environmental conditions. Flood inundation results in economic loss the people, and is also one of the main factors aggravation hygienic conditions, which would be mitigated by the Project. The improvement of river and lake facilities will result in the improvement of people's living environment.


  • The Sewerage and Drainage Company (SDC) is the most important agency responsible for the implementation and operation and maintenance of the drainage and sewerage projects. Its functions shall be strengthened by providing of sufficient O&M budget, reinforcing middle to senior class engineers, and training technicians.

  • A new organization for the implementation of the To Lich River Basin Drainage Project shall be established in order to discuss and determine all collaborations required to lead the Project to a successful completion, both for management and technical guidance.

  • Comprehensive environmental survey data have not been accumulated at present. It is recommended that an "Environmental Monitoring Program" be implemented separately from the projects.

  • It is presumed that more that half of the Study Area has been subject to ground subsidence of 5-10mm/year. It is necessary to continue the observation of ground subsidences following a well established program.

  • Lakes and ponds in the City area play a very important role in drainage and sewerage. They should be conserved for the future.

  • Any works relevant to the West Lake should be preceded by a comprehensive environmental study on the Lake, which should be commenced as early as possible.

  • It is recommended that unused lands adjacent to the pumping station and reservoir be reserved for the future expansion of the pumping stations and regulation reservoirs.

  • Substantial improvement of rivers/lakes' water quality cannot be attained unless wastewater treatment systems are introduced. A feasibility study shall be conducted in order to accelerate the program's implementation.

  • The role of the Urban Environment Company (URENCO), which is responsible for the collection and disposal of solid waste and excreta, is particularly important. The reinforcement of this institution, together with the provision of the necessary equipment and facilities, should be carried out under a separate aid program.


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