ADB funds Vietnam’s infrastructure projects
The State Bank of Vietnam and the Asian Development Bank (ADB) on October 16 signed loan and non-refundable contracts valuing at US$624 million for two infrastructure projects in the Mekong Delta and Central Highlands regions.
Under the contracts, the Mekong delta centre connectivity project – a key government project to complete the road system in the southern region - will receive US$544 million, of which US$410 million is from ADB’s ordinary capital resources and US$134 million is funded by Australian’s non-refundable aid through ADB.
Meanwhile, the US$87.58 million project of rural infrastructure development for Central Highlands provinces will get US$80 million in preferential credit from the Asian Development Fund (ADF). It will be carried out in five years from 2014 to 2018 to assist efforts to reduce poverty through developing technical and social infrastructure and improving socio-economic conditions in the five provinces of Lam Dong, Dak Nong, Dak Lak, Gia Lai and Kon Tum.
Addressing the signing ceremony, SBV Governor Nguyen Van Binh said the funding is of significant importance to Vietnam in the context of limited domestic investment for infrastructure projects.
The success of these projects will help the Vietnamese Government meet its targets specified in the national socio-economic development plan, while serving as the basis for ADB to decide its assistance level to Vietnam in the future, he said.