The Asian Development Bank (ADB) has granted a US$74.3M loan to improve irrigation infrastructure and management in the central region of Vietnam.
This project covers one irrigation subproject each in Binh Dinh, Quang Binh, Quang Ngai, Quang Tri, Tranh Hoa and Thua Thien Hue – central region provinces that have persistently high rural poverty and suffer disproportionately from natural disasters.
Each subproject plans to improve badly deteriorated and incomplete irrigation and drainage infrastructure, and reduce their vulnerability to natural disasters. More than 57,000ha of agricultural land will benefit from the project.
The loan comes from ADB’s Asian Development Fund and carries a 32-year term, including a grace period of eight years.
Meanwhile, ADB has also issued a US$360M loan to support the expansion programme of Vietnam’s power sector in the country’s northern region.
The programme is to expand and upgrade 500kV and 220kV transmission lines and associated substations. This will enable power to be supplied to planned industrial zones in the region, and create a potential for power interconnection with China.
Vietnam’s strong economic growth over the past decade has fuelled an increase in demand for electricity by about 15% per year. The country’s electricity deficit, however, is also growing, prompting the need for development in the power sector.