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./.
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./.
