WB to Lend US$290Mln for Three Vietnam Projects

The World Bank (WB) will provide US$290 million in preferential credits for Vietnam to implement three projects on poverty reduction, expanding rural transport networks, and developing Hanoi’s urban traffic system, said state media.

 

The WB and the State Bank of Vietnam signed agreements on the first two projects in Hanoi May 17; while the urban traffic development project has been approved by the municipal government.

 

The first credit of US$50 million, through the International Development Association (IDA) under the WB, will be poured into the second Phase of Program 135 (P135-2), to reduce poverty in ethnic minority communities and remote areas.

 

The P135-2 project to be carried out in the 2007-10 period is expected to facilitate socio-economic development for around 1,644 of the country’s poorest communes and 2,500 poorest villages.

 

The second credit worth US$106.25 million will be used to expand rural transport networks in Vietnam’s 33 northern and central provinces. The project is co-financed by the UK Department for International Development, which will provide US$25.4 million for road maintenance.

 

The WB provided the last credit of US$134 million for a VND7.24 trillion (US$452.42 million) project developing Hanoi’s urban traffic system.

 

The two-phase project aims to build two rapid bus routes, Lang Ha – Giang Vo route of 17.4 kilometers and Giai Phong route of 10.9 kilometers, and to construct 6-km Belt road 2, from Huu Hong dike to Thang Long industrial park.

 

The project’s first phase will be kicked off in the fourth quarter this year, and is scheduled to be completed in late 2010.

 

WB figures show Vietnam has been one of the best performing economies in the world with 7.3 per cent average annual GDP growth between 1995 and 2005. (Local sources)