(CPV) - The Asian Development Bank (ADB) and the Government of Vietnam signed two loan agreements totaling $180 million in Hanoi on March 9th 2012 to help the country to develop irrigation infrastructure and water resources management and services within the northern Chu and southern Ma rivers irrigation system in Thanh Hoa province, and to improve urban infrastructure and municipal services in the northern economic centers of Viet Tri, Hung Yen and Dong Dang.
(CPV) - The Asian Development Bank (ADB) and the Government of Vietnam signed two loan agreements totaling $180 million in Hanoi on March 9 th 2012 to help the country to develop irrigation infrastructure and water resources management and services within the northern Chu and southern Ma rivers irrigation system in Thanh Hoa province, and to improve urban infrastructure and municipal services in the northern economic centers of Viet Tri, Hung Yen and Dong Dang.
At the signing ceremony, State Bank of Viet Nam’s Governor Nguyen Van Binhrepresented the Government, and ADB Country Director for Viet Nam Tomoyuki Kimura represented ADB.
“Provision of adequate infrastructure is a necessary condition that each and every Asian middle-income country must meet to maintain the momentum of economic growth, enhance trade and investment, and strengthen its competitiveness,” said Mr. Kimura. “ADB places great importance on infrastructure as poor infrastructure will not only prevent farmers from improving productivity and earning higher income but also hobble investment and business opportunities, and makes urban development issues more critical.”
The $110 million loan signed was for the development of the Northern Chu and Southern Ma rivers irrigation system (NCSMRIS) project. The project is part of the government’s overall investment program for the NCSMRIS, which will increase water productivity, reduce rural energy use, and improve food security.
The NCSMRIS development project will support the government’s plan to expand irrigated area within the NCSMRIS command area from 15,700 hectares to more than 31,000 hectares. Through improved irrigation facilities and water supplies, the project is expected to benefit more than 119,495 households (466,000 people) of which nearly 11,500 households comprise Thai and Muong ethnic minorities.
Another $70 million loan from ADB’s Asian Development Fund will finance urban infrastructure construction and upgrading, and strengthening of local government’s urban management capacities in Viet Tri, Hung Yen and Dong Dang along the North-South Economic Corridor (NSEC).
“To address critical urban development issues and divert rural migration away from large cities, Viet Nam is focusing on development of secondary cities and strengthening of the rural-urban linkages,” Mr. Kimura added. “The project will not only develop Viet Tri, Hung Yen and Dong Dang to complement Ha Noi as northern Viet Nam’s economic centers but also contribute to the transformation of the NSEC from transport corridor to full-fledged economic corridor.”