73565
                 Vietnam: Results-based Rural Water Supply and Sanitation
                           under the National Target Program

                                SUMMARY OF DISCUSSION∗

                               Meeting of the Executive Directors

                                           November 1, 2012

       The Executive Directors approved an IDA credit in the amount of SDR 131.5 million
(US$200 million equivalent) for the Vietnam Results-based Rural Water Supply and Sanitation
under the National Target Program on the payment terms and conditions set out in the
President’s Memorandum (IDA/R2012-0257).

        Directors welcomed the use of the Program for Results lending instrument for the
operation, noting that this is the first time the instrument is being used in the East Asia and
Pacific region and in the water and sanitation sector. Directors highlighted the importance of
linking disbursements to concrete results in service delivery and strengthening country systems
and governance at national and provincial levels. In this regard, Directors urged the team to work
closely with the Government on implementation to address gaps in the NTP’s governance,
procurement and financial management systems and build capacity of the implementing
agencies, so as to build sustainability of the program. Directors noted the importance of close
supervision and monitoring of risks, engaging beneficiaries in the Program, maximizing
transparency and ensuring wide dissemination of annual results achieved and lessons learned,
and coordinating closely with other donors.




∗
 This summary is not an approved record.