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VietNamNews

ADB grants $251m loans to Viet Nam

Update: December, 22/2012 - 10:42

HA NOI (VNS) — Nguyen Van Binh, Governor of the State Bank of Viet Nam and Tomoyuki Kimura, Country Director of the Asian Development Bank (ADB) in Viet Nam, yesterday signed three loan agreements totalling US$251 million in Ha Noi.

The loans are aimed at helping Viet Nam streng-then education quality, ensuring a reliable electricity supply and improving flood and drought management and mitigation.

"Viet Nam's future growth will depend on a labour force skilled enough to meet the needs of the job market and a reliable electricity supply to meet rapidly growing energy demands," said Kumara. "It also needs funds to mitigate risks posed by floods and droughts."

A $90 million con-cessional loan from the ADB's Asian Development Fund for the Second Upper Secondary Education Development Project will help improve the readiness of upper secondary school graduates for tertiary and vocational career development. This will be achieved by enhancing the quality of upper-secondary education to meet international standards, improving access to upper-secondary education for disadvantaged groups, including girls and ethnic students, and strengthening the management of upper-secondary education.

Another $110.19 million loan represents the second tranche of a $730 million power transmission investment programme to Viet Nam that the ADB approved in December 2011. The loan partially supports the implementation of the seventh National Power Development Master Plan to ensure supply to industrial, commercial and residential consumers.

The project also supports Viet Nam's efforts to improve the operations of the National Power Transmission Corporation. The Agence Francaise de Developpment (AFD) will co-finance the project with 75 million euros (more than $99 million).

In addition, to help Viet Nam improve flood and drought management and reduce economic losses, the ADB provided a loan of $45 million, while the Australian Agency for International Development (AusAID) offered a grant of $5.9 million.

To improve flood and drought preparedness, the project will link infrastructure upgrades in Dong Thap and Tien Giang provinces in the Mekong Delta with community-based disaster-risk management and enhanced regional forecasting.

On the same day, the Vietnamese Ministry of Planning and Investment and the South Korean Embassy also signed an agreement for South Korea to lend Viet Nam US$1.2 billion, which will be disbursed for projects during 2012-15.

The agreement will focus on boosting the development of the transport and drainage systems as well as recyclable energy, information and technology, health care, capacity building and agricultural and rural development.

Bui Quang Vinh, Minister of Planning and Investment, said the Vietnamese Government appreciated South Korea's growing support despite the global economic difficulties.

South Korea is currently the second largest investor in Viet Nam out of a total of 96 countries and territories with investment projects in the country. — VNS

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