The Asian Development Bank (ADB) will provide a 80 million USD loan to
Vietnam ’s road upgrade project in six northern mountainous provinces.
An agreement to the effect was signed in Hanoi on Dec. 2 by
Governor of the State Bank of Vietnam Nguyen Van Binh and ADB Country
Director in Vietnam Tomoyuki Kimura.
The project has
an investment capital of 109.6 million USD in the first phase and will
upgrade more than 300km of unpaved roads in Bac Kan , Cao Bang, Ha
Giang, Tuyen Quang, Yen Bai and Lao Cai provinces.
The project will be completed in December, 2016.
ADB provides the 32-year loan with an annual interest rate of 1
percent in the eight-year grace period, and an annual interest rate of
1.5 percent in the following years.
Within the
framework project, the Nordic Development Fund will provide 2 million
EUR in non-refundable aid to the project to take measures to mitigate
natural disasters while upgrading roads.
Governor Binh
said the lack of rural infrastructure in mountainous regions hinders
the poverty reduction programme in Vietnam .
ADB
representative Kimura pointed out the necessity to narrow the
development gap, increase the possibility of access to markets and
social services and improve links with ethnic minority communities in
remote areas.
The safer, sealed roads will help
shorten travel time, reduce isolation and bring more trade and
investment opportunities, contributing to poverty reduction and
equitable and sustainable development in the region./.