Phan Ri – Phan Thiet Irrigation Project

While the urban poverty rate improved dramatically from 25.1% in 1993 to 5.7% in 2004 due to the high growth accompanying the transition to a market economy in Vietnam, the poverty rate in rural areas shifted from 66.5% to 30.5% only, leaving 90% of the poor in rural villages. Therefore, they have a number of pressing issues such as developing and spreading farming technology as well as improving the agricultural infrastructure to enhance agricultural productivity. Other critical issues include improving the agricultural worker income through business diversification, providing farm village infrastructure to raise the standard of living.

Binh Thuan Province is located in the northeast area of southern Vietnam. It is one of driest provinces in Vietnam with very low rainfall and regular droughts resulting in low level of agricultural productivity for the province. Developing irrigation facilities and system and enlarging the areas to be irrigated by the year 2010 to the level of 131, 300 ha is the target set by the People’s Committee of Binh Thuan.

JICA is currently carrying out the project for improving the irrigation and drainage facilities, providing agricultural infrastructure and strengthening the capacity of agriculture extension service in Bac Binh District of Binh Thuan Province The project is aiming at increasing agricultural production and reduce poverty by increasing farming incomes. The funding of the loan is specifically designated for (1) constructing irrigation and drainage facilities to service about 11,700 hectares of land (of which 10,500 hectares is newly irrigated area) including the Song Luy headworks and a main canal, repairing the gate of the Dong Moi main canal, developing farmland, providing public facilities and social infrastructures for 19 villages, and (2) consulting services for the project.

Project’s beneficiaries will be the agricultural workers in the irrigated areas, households currently living in the area and the new settlers.

The environmental impact assessment report for the project was already approved in April 2005 by the Department of Natural Resources and Environment of Binh Thuan Province. The project will be implemented with due consideration for natural environment, social environment and anti- pollution.