ADB offers two loans totaling USD299 million to promote inclusive growth in VN

(VNF) - The Asian Development Bank (ADB) has approved two loans totaling USD 299 million to help improve basic infrastructure services and promote sustainable economy growth in northeastern and north-central provinces of Vietnam.

According to the ADB, the north-central provinces are vulnerable to natural disasters that challenge economic development. In picture: a corner of Phong Nha - Ke Bang Nature Reserve, Bo Trach district, Quang Binh after the storm - Photo: NHU BINH

Accordingly, the USD 149 million loan is to improve basic infrastructure for equal growth in the four north-central provinces of Ha Tinh, Nghe An, Quang Binh and Quang Tri.

The project including a USD 52 million loan and a USD 97 million concessional loan, is estimated to benefit more than 1 million people.

ADB believes that economic development in the project provinces is constrained by fragmented coverage of basic infrastructure, with the 2015 poverty rate reaching 13% compared to the 7% national average. In addition, these provinces are highly vulnerable to natural disasters and are predicted to have the country’s highest increase in annual mean temperature at 1.7 per cent and annual rainfall shooting up by 20 per cent.

The remaining USD 150 million loan is to help improve economic connectivity and raise living standards in four of northeastern provinces of Bac Kan , Cao Bang, Ha Giang and Lang Son.

This support is expected to benefit more than 212,000 people through the development of basic infrastructure across key areas including trade, transportation, health and agriculture.

Specifically, the project will help improve road connectivity between provinces by upgrading 121km of provincial roads and 144km of district roads, providing rural water for approximately 42,300 people, and improving infrastructure in the agricultural value chain in Lang Son province through farm-to-market connectivity and support for local businesses.

The project will also strengthen the capacity of provincial governments, especially in the management of public assets./.

VNF