PANO - The Asian Development Bank (ADB) and the Government of Viet Nam signed two loan agreements totaling $180 million on March 9 th in Hanoi.
The loans aim 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.
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. 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).
Mr. Tomoyuki Kimura, the ADB Country Director for Viet Nam said, “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.”
“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” he added. Chung Anh