ADB loans $210m for rural development

The Government of Viet Nam signed loan agreements worth US$210 million with the Asian Development Bank (ADB) yesterday to support rural area development.

Specifically, the funds will support infrastructure improvements, transportation and communicable disease controls in rural areas.

Governor of the State Bank of Viet Nam Nguyen Van Giau represented the Government while ADB Country Director for Viet Nam Ayumi Konishi attended the signing ceremony on the bank’s behalf.

According to ADB, isolation due to a lack of infrastructure has limited rural resident access to social services in mountainous communities. The situation hinders the Government’s efforts to alleviate poverty and increases the gaps between urban and rural areas.

The first loan of $108 million, for the Sustainable Rural Infrastructure Development in Northern Mountain Provinces Project, will focus on upgrading small – to medium-scale irrigation and drainage systems for about 12,400ha of farmland, 600 kilometres of rural roads and markets in 15 of the poorest northern mountain provinces.

A second $75 million loan will improve 340 kilometres of roads stretching through Viet Nam, Laos and Thailand under the Second Northern Greater Mekong Sub-region (GMS) Transport Network Improvement Project.

The third $27 million loan from the Asian Development Fund will expand surveillance response systems to help control dengue outbreaks and prevent the spread of communicable and tropical diseases.— VNS

Tags: ADB loans