HCMC – The World Bank (WB) and the Asian Development Bank (ADB) have signed agreements to provide nearly US$400 million in loans and grants for three projects in Vietnam to improve the environment and develop logistics infrastructure.
The signing ceremony was held on April 16 in Hanoi on the sidelines of the 4th Partnership for Green Growth and the 2030 Global Goals (P4G) Summit, reported the Vietnam News Agency.
The loans and aid will be used for improving water environment in Binh Duong Province, developing inland waterway and logistics corridors in southern Vietnam, and enhancing climate-resilient infrastructure for ethnic minority communities in Phu Yen and Quang Tri provinces.
The first is the Binh Duong Water Environment Improvement Project, which has a total investment of VND7.2 trillion. Of this, VND5.4 trillion, equivalent to US$230.76 million, will be financed through a loan from the WB’s International Bank for Reconstruction and Development (IBRD).
The project, managed by the People’s Committee of Binh Duong Province, aims to address urban wastewater pollution in the cities of Thuan An, Di An, and Tan Uyen.
The second, known as the Southern Waterway Corridors and Logistics Development Project, costs VND3.9 trillion, with around VND2.5 trillion (US$107.67 million) financed through a loan from the WB’s International Development Association (IDA).
The IDA funding will support efforts to improve infrastructure, reduce congestion and accidents, and lower freight transport costs by upgrading the East–West corridor connecting the Mekong Delta and enhancing the North–South corridor linking the southeastern region with the Cai Mep–Thi Vai port cluster.
It will also facilitate connection to the future Can Gio International Transshipment Port, boosting socio-economic development and ensuring national defence and security in the Mekong Delta and southeastern regions.
The third project is the Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project II in Phu Yen and Quang Tri Provinces.
The Phu Yen subproject needs over VND914.7 billion, equivalent to US$39.4 million. The funding includes an Ordinary Capital Resources (OCR) loan from the ADB worth nearly VND673.1 billion, a grant of VND23.2 billion, and counterpart capital of nearly VND218.5 billion.
The Quang Tri subproject costs nearly VND921.7 billion, comprising an ADB OCR loan of VND696.3 billion and counterpart funding of VND225.4 billion.
