Hundreds of thousands of people living in central Vietnam will receive clean water and sanitation facilities provided by a project that received a loan of 45 million USD from the Asian Development Bank on Feb. 2.

The loan agreement for the Central Region Rural Water Supply and Sanitation Sector Project was inked between the ADB Country Director for Vietnam Ayumi Konishi and the State Bank of Vietnam ’s Governor Nguyen Van Giau.

The loan aims to support the country's efforts in achieving the national development targets and Millennium Development Goals for peoples’ access to clean water supply and sanitation.

The project will provide clean water and sanitation facilities for some 350,000 people in the six central coastal provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Nam and Binh Dinh where the poverty levels are higher than the national average.

Households in the project provinces will be provided with grants and credit to build latrines. Poverty-ridden households will be supported with grants while credit will be given to households not designated as poor through a revolving fund managed by the Vietnam Women’s Union .

To improve hygiene awareness, water and sanitation commune committees will form to provide information and education activities, with at least 40 percent of the members women.

In the Feb. 2 press release, the ADB praised Vietnam for its significant efforts to stay on track to meet its goal of providing access to clean water for 85 percent of the total population by 2010. The bank said this goal is being achieved, but in regards to improved sanitation, the progress is slower and will unlikely meet its 2010 target of 70 percent.

The ADB’s loan, from its concessional Asian Development Fund, covers 90 percent of the project cost of 50 million USD and has a 32-year term with a grace period of eight years./.