US$112 million ADB loan for agricultural development
(VOV) -The State Bank of Vietnam (SVB) and the Asian Development Bank (ADB) signed two credit loan agreements worth nearly US$112 million in Hanoi on March 7.
The first, from the Asian Development Fund to the value of US$74 million, aims to sponsor a low-carbon farming project to encourage sustainable, effective and environmentally friendly agricultural production that limits carbon emissions by developing waste management facilities.
The project will also provide credit for a value-adding chain producing bio-gas as well as facilitate the implementation of cutting edge technologies.
SVB said agriculture is the largest generator of green-house gas in Vietnam, accounting for 50 percent of the country’s total volume of green-house gas emission .
However, breeding livestock, for instance, actively contributes to poverty reduction and bring economic prosperity in rural areas and more and more farmers and small to medium businesses have been involved in the industry.
Once completed, the project will help reduce pollution from agricultural waste and create a cleaner environment in at least 10 provinces, namely Lao Cai, Son La, Phu Tho, Bac Giang, Nam Dinh, Ha Tinh, Dinnh, Tien Giang, Ben Tre and Soc Trang.
The second loan worth US$37.88 million aims to strengthen the Vietnamese government’s capacity to prepare and implement ADB assisted projects effectively.