The ADB's 8 million-USD loan aims to assist the expansion of the Tan Hiep Water Treatment Plant in Binh Duong province (Illustrative photo: VNA) Hanoi (VNA) - The Asian Development Bank (ADB) and Binh Duong WaterEnvironment Joint Stock Company (BIWASE) signed an 8 million USD loan to expandthe Tan Hiep Water Treatment Plant (WTP) in Binh Duong province, one of thefastest-developing provinces of Vietnam.
The expansion will increase production capacity, install additional waterintake pumps, and build raw water transmission pipes from the Dong Nai Riverintake facility.
The upgrade will help to meet rising water demand of residential and industrialcustomers in Ben Cat town, Tan Uyen town, Binh Duong new city, and Thu Dau Motcity of Binh Duong province, where industrial zones provide jobs for nearly 1.3million locals and more than 500,000 foreigners. The financing package alsoincludes a parallel cofinancing of 8 million USD from the Japan InternationalCooperation Agency.
A further 500,000 USD in technical assistance will be provided by the e-Asiaand Knowledge Partnership Fund, established in 2006 by the Republic of Korea tohelp ADB’s developing members meet their development goals through the creationand sharing of experience, information, and knowledge.
“This financing will deliver sustainable and efficient water supplies in thisfast-growing province, spurring its future growth and contribution to thebroader economy,” said Infrastructure Finance Division Director for SoutheastAsia, East Asia, and the Pacific at ADB's Private Sector Operations DepartmentJackie B. Surtani.
“It is a strong signal to other international financiers that private sectorcommercial financing of Vietnam’s water sector is feasible and attractive. Weare also very happy to work with the Japan International Cooperation Agency onthis transaction to support water sector development in Vietnam,” he said.
Chairman of BIWASE’s board of directors Nguyen Van Thien spoke highly of thecompany’s long-term relationship with ADB, which goes back since 2002 when it participatedin the third provincial towns water supply and sanitation project.
“We appreciate the continued support from ADB in providing a one-stop solutionto enable BIWASE to transition from sovereign financing to standalone privatesector financing as it continues on its growth path. We look forward to ADB’scontinued engagement with the water sector in Vietnam and hope to work with ADBagain in the future.”
The technical assistance will provide capacity building on financial managementand climate-resilient business and operational planning. It will also enhancethe legal foundation of the business and operational framework between BIWASE andthe Binh Duong provincial People’s Committee. ADB has supported Vietnam’swater sector since 1993, through seven sovereign loans including the Water Sector Investment Programme.
BIWASE was founded in 1975 as a government-owned entity. It became ajoint-stock company in 2016 and listed on the Ho Chi Minh Stock Exchange in2017. Currently, BIWASE has a total daily water production capacity of 311,300cubic meters, and its services cover 78 percent of Binh Duong province’spopulation. BIWASE is also the province’s sole provider of municipalsolid-waste treatment and municipal wastewater and sanitation services.
ADB iscommitted to achieving a prosperous, inclusive, resilient, and sustainable Asiaand the Pacific, while sustaining its efforts to eradicate extreme poverty.Established in 1966, it is owned by 68 members - 49 from the region./.
VNA
