Lao Finance Minister Lien Thikeo and BIDV General Director Phan Duc Tu (L) sign the contract (Source: VNA)
Vientiane (VNA) – The Bank for Investment and Development of Vietnam (BIDV) will fund the construction of an irrigation system in the northern Lao province of Luang Namtha.

A credit contract to this effect was signed by Lao Finance Minister Lien Thikeo and BIDV General Director Phan Duc Tu in Vientiane on December 3.

This is one of the four credit contracts totalling 230 million USD sealed by the Vietnamese bank in an effort to help the neighbouring country implement its infrastructure projects.

Located in Xinh district, Luang Namtha province, the irrigation project includes two smaller ones, invested by the Lao Ministry of Agriculture and Forestry.

Once operational, the facility is expected to supply water to over 3,100 hectares of farming land in the district, prevent drought and flooding, and help local citizens improve productivity and living standards.

It will also contribute to the Lao Government’s poverty reduction efforts through ensuring food security in northern Laos.

Apart from the irrigation system, the bank has provided financial assistance to two infrastructure projects in Houaphane province.-VNA