HA NOI (VNS)– The World Bank Executive Board on Tuesday approved a new US$156 million loan to Viet Nam for an ongoing project to improve transportion infrastructure in the Mekong Delta.
|Illustrative image.—Photo Giaothongvantai.vn
The loan comes from the International Development Association – the bank's concessional lending arm for low-income countries.
The interest rate on this loan is 1.25 per cent per annum. It has a maturity period of 25 years and a grace period of five years.
The additional financing will be used to improve the standard of national trunk roads connecting the main economic hub of the Mekong Delta as well as trunk waterways connecting the Northern and Coastal Delta areas to Can Tho and HCM City.
It will also be used to upgrade feeder roads, ports, and landing stages at the district and provincial levels in the Mekong Delta, thus enhance the connectivity of poorer and more distant producer communities.
The original project was co-financed by the Australian Agency for International Development (AusAID) through a $25 million equivalent grant. AusAID has approved an additional grant of $15 million, under the AusAID-World Bank Strategic Partnership in Viet Nam to this additional financing. - VNS