19:08 (GMT +7) - Tuesday 16/01/2018

Vietnam Today

ADB provides loan for central, north-central and northeastern region

Released at: 19:31, 18/12/2017

ADB provides loan for central, north-central and northeastern region

A village in Ha Giang province (Photo from vietnam.vnanet.vn)

$299 million loan to help improve economic connectivity, living standards and infrastructure and promote inclusive growth in central, north-central and northeastern provinces.

by Ngoc Chi

The Asian Development Bank (ADB)’s Board of Directors has approved a $299 million loan to help improve economic connectivity, living standards, and infrastructure, and promote inclusive growth in Vietnam’s central, north-central, and northeastern provinces.

$149 million is for the central and north-central region, benefitting over 1 million people in the four provinces of Ha Tinh, Nghe An, Quang Binh, and Quang Tri.

ADB’s assistance for the Basic Infrastructure for Inclusive Growth in the North Central Province’s Sector Project includes a regular loan of $52 million and a concessional loan of $97 million. Both loans will be financed from ordinary capital resources, where most of ADB’s lending come from. The total cost of the project is $203.52 million, with the Vietnamese Government contributing $54.52 million.

“Vietnam has been one of the fastest growing economies in the world since 2010, with an annual growth average of about 6 per cent as at 2015,” said Mr. Eric Sidgwick, ADB’s Country Director for Vietnam. “But growth has not been significantly reflected in rural areas, particularly in the north-central provinces. ADB’s assistance will help promote inclusive growth and bridge the development gap by integrating cities and rural areas in the region.”

To address these issues, the project will improve connectivity among provinces by upgrading or building about 214 km of climate-resilient provincial and district roads, which will benefit more than 900,000 people.

The project will also boost business development through the construction or upgrading of rural water supplies, flood protection, irrigation, and port services. It will also bolster capacity at provincial governments, particularly in public asset management. The project is expected to be completed by the first quarter of 2023.

Meanwhile, $150 million is to support northeastern provinces by enhancing basic infrastructure and services. The assistance is expected to help over 212,000 people in the four provinces of Bac Kan, Cao Bang, Ha Giang, and Lang Son.

The project will improve road connectivity among the provinces by upgrading about 121 km of provincial and 144 km of district roads, provide rural water supplies benefiting 42,300 people, and improve agriculture value chain infrastructure in Lang Son province through farm-to-market connectivity and support to local businesses. It will also strengthen the capacity of provincial governments, particularly in public asset management.

The total cost of the project is $190.3 million, with the Vietnamese Government contributing $40.3 million. The project is also expected to be completed by the first quarter of 2023.

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