Feasibility Study for AFD funding towards two urban investments funds (CADIF and DDIF)

Client : AFD
Country : Vietnam
Sector : Urban development
Funding : AFD
Dates : 2010


Cân Tho and Danang cities are major economic engines for Vietnam. Their rapid urbanisation poses significant environmental challenges. As part of its urban development strategy, the French development Agency (AFD)decided to fund much needed urban infrastructure and support the strengthening of local financial instruments - Da Nang Development and Investment Fund (DDIF) and Can Tho City Development Investment Fund (CADIF), created in 2008.

The feasibility study focused on gathering a thorough understanding of the project’s environment and assessing the institutional, financial and technical resources of both funds to implement the project.

Nodalis Conseil team produced a comprehensive feasibility study falling into three components:

                  ·  Operational component: project analysis and urban development strategy analysis;

                  ·  Financial and Legal component: legal analysis and review of governance, financial performance and risk management;

               ·  Institutional component: analysis of the institutional and operational links between the cities and the local funds, capacity needs assessment, and definition of a capacity building programme to be implemented through the project.

Based on the results of the Feasibility study, the AFD granted a euro 20 million loan to the government of Vietnam. This financial support was on-lent to the two funds. The project started in 2011 and is now approaching completion. It further beneficiated from a capacity building grant to fund a stand-alone capacity building programme. AFD later replicated the project for two other local development investment funds in the country.

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