Local authorities in Ho Chi Minh City have agreed to apply for the first time the design-build-operate (DBO) format to a wastewater treatment plant in the second phase of an environmental sanitation project in Nhieu Loc-Thi Nghe Canal basin, the Saigon Times Daily reported.

The project’s management board said as DBO format is the first of its kind to be implemented in Vietnam, the HCM City government has sought the Government’s approval for a special bidding mechanism to find contractors for the Nhieu Loc-Thi Nghe wastewater treatment plant.

DBO was suggested by the World Bank which finances the project as this format has multiple advantages such as concentrated and sustainable operation conducted by an experienced firm, cost efficiency for the design, construction and operation of the project via a competitive bidding process, and effective wastewater treatment.

In addition, this investment format is expected to help train manpower for the city’s wastewater treatment sector, simplified procedures for procurement and bidding and time saving as the consultant, contractors and operator are selected through only one bidding process.

The second phase of the project is estimated to cost 524 million USD, including 450 million USD funded by the WB’s official development assistance (ODA) loan. This phase will be carried out in 2015-2019 to collect and treat wastewater in the Nhieu Loc-Thi Nghe Canal basin and District 2.

The project will also help improve the environment for locals, restore and conserve the ecosystems of the Saigon River and the catchment area of the Dong Nai River, raise awareness of environmental protection, and boost the development of the city’s tourism and economy.

The main components of the project are an 8-km sewer from the eastern bank of the Saigon River to the wastewater treatment plant located in District 2, construction of the plant with daily treatment capacity of 480,000 cubic metres, and a sewer network connecting to households in District 2.-VNA