ADB Stops Loaning for Sluggish HCMC Drainage Project
The Asian Development Bank (ADB) has made decision on cutting off a US$43 million soft loan for a Ho Chi Minh City water drainage project because only 3.4 per cent of its construction work has been done, state media said Monday.
Another reason is the outmoded plans, said the bank, noting the city leaders will soon ask Prime Minister Nguyen Tan Dung for alternative funds.
Once completed, the Hang Bang drainage project, which will require additional VND400 billion (US$25.1 million), is expected to eliminate flooding in 29 waterlogged areas of District 6, where about 300,000 people are living.
The ADB started providing a low-interest US$100 million loan for the project in 2001, but the amount was reduced to around US$43 million in late 2005. The loan was extended to 2008 due to the project’s slow progress.
Ayumi Konish, the ADB country director to Vietnam promised to consider assisting with research into new designs to tackle water problems in the area if the city continues the project.
Several other projects capitalized at US$463 million in the city which are scheduled for completion this year will be likely to be delayed until 2009.
(Thanhnien News, Liberated Saigon)
Vietnamese
