Wednesday, December 12 2018

VietNamNews

ADB approves loans totaling $299 million to promote inclusive growth in VN

Update: December, 19/2017 - 10:00
A landslide blocks traffic in Mèo Vạc District, Hà Giang Province. — VNA/VNS Photo Minh Đức
Viet Nam News

HÀ NỘI — The Asian Development Bank’s(ADB) Board of Directors has approved loans totaling US$299 million to help improve basic infrastructure services and promote inclusive growth in northeastern and north-central provinces of Việt Nam.

Loans of $149 million will finance the basic infrastructure development in the north-central provinces, which aims to upgrade roads, improve rural water supply as well as flood protection, irrigation and port services in the four provinces of Hà Tĩnh, Nghệ An, Quảng Bình and Quảng Trị.

The project is also expected to improve the capacity of provincial governments, particularly in public assets management.

The Government will contribute $54.52 million to the project.

A $150 million loan will fund to the construction and upgradation of basic infrastructure in the northeastern provinces, which aims to improve economic connectivity and raise living standards in the four provinces of Bắc Kạn, Cao Bằng, Hà Giang and Lạng Sơn by enhancing basic infrastructure and services.  The Government of Việt Nam will contribute $40.3 million to the project.

Specifically, the project will improve road connectivity among the provinces by upgrading about 121km  of provincial and 144km of district roads, supply water to 42,300 people, and improve agriculture value chain infrastructure in Lạng Sơn Province through farm-to-market connectivity and support for local businesses. It will also strengthen the capacity of the provincial governments in public asset management.

“Việt Nam has been experiencing remarkable growth over the last few years. However, the majority of economic gains have accrued in the urban areas, with rural areas, including provinces in the northeast, lagging behind,” said Eric Sidgwick, ADB’s Country Director for Việt Nam.

He said the ADB was confident the project will help realise the great growth and development potential of the northeastern part of Việt Nam, particularly in trade, agriculture, and tourism.

The four northeastern provinces —the project area—have significant potential to become trade hubs, given their strategic location and proximity to China, the capital Hà Nội, the Hải Phòng Port, and the ADB-supported Greater Mekong Subregion North-South Economic Corridor.

However, these potentials are yet to be fully realised, with gross domestic product per capita of the four provinces in 2015 remaining at $1,160, almost half the $2,036 national average. — VNS

 

 

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