Out-Law News | 14 Apr 2021 | 2:43 am | 1 min. read
The Asian Development Bank (ADB) has proposed to invest $67.3 million to develop a smart and energy efficient city project (SEECP) in Can Tho, Mekong Delta, Vietnam.
The investment will be spent on developing smart city infrastructure, lighting systems with smart technology and public buildings, according to press reports. The project will include smart lighting and smart building.
The project's funding will come from an official development assistance (ODA) loan of $32.9m from ADB, another ODA loan of $7.07m from the Green Climate Fund (GCF) and a $7.07m grant and the rest from the state budget.
ADB will manage the GCF’s funding sources in this project. Work on the first phase of the project, including purchase and construction, will start in 2022 and is expected to complete by 2025.
John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “Smart cities not only have the ability to deliver better quality of life but also help to reduce the impact of modernity on the climate and environment. It therefore has the potential to be a win-win for society and the environment in which we inhabit”.
“Challenges though need to be addressed, ranging from adjusting aspects of our behaviour that have a negative climate impact through to addressing laws and regulations so as to permit the implementation of smart technology and systems. Vietnam is an emerging economy with strong economic growth and therefore potential for increasing environmental impact. By backing this smart city initiative, the ADB could be leading the way for greater investment into other smart cities around the region,” he said.