Signing loan and aid agreements worth nearly 400 million USD for 3 projects

The total value of loans and grants signed between Vietnam and the World Bank (WB) and the Asian Development Bank (ADB) is nearly 400 million USD for projects.

Prime Minister Pham Minh Chinh witnessed the signing ceremony of loan and aid agreements between Vietnam and the Asian Development Bank (ADB) for the Ethnic Minority Infrastructure Development Project to Respond to Climate Change in Phu Yen and Quang Tri Provinces, funded by ADB. (Photo: Duong Giang/VNA)

On April 16, at the National Convention Center, the signing ceremony of loan and aid agreements between Vietnam and the World Bank (WB) and the Asian Development Bank (ADB) took place for the Binh Duong Province Water Environment Improvement Project, WB loan (IBRD); Southern Region Waterway and Logistics Corridor Development Project, WB loan (IDA); and Ethnic Minority Infrastructure Development Project to Respond to Climate Change in Phu Yen and Quang Tri Provinces, ADB loan.

Witnessing the signing ceremony were Prime Minister Pham Minh Chinh, Deputy Prime Minister Bui Thanh Son, Minister of Finance Nguyen Van Thang, ADB Vice President - Mr. Scott Morris, ADB Country Director in Vietnam - Mr. Shantanu Chakraborty, WB Country Director in Vietnam, Cambodia, and Laos - Ms. Mariam J. Sherman, representatives of the Office of the President, the Office of the Government, the Ministry of Foreign Affairs, the Ministry of Finance, the Ministry of Justice, the Ministry of Construction, the People's Committees of Binh Duong, Quang Tri, Phu Yen provinces and representatives of project investors.

The total value of loans and grants signed is nearly 400 million USD for projects.

Specifically, the Binh Duong Province Water Environment Improvement Project has a total investment of VND 7,211 billion; of which, the WB loan (IBRD belongs to the WB group specializing in low-interest loans to reduce poverty in middle-income countries or poorer countries with credit reputation) is VND 5,354 billion (equivalent to USD 230.76 million). The project's governing body is the People's Committee of Binh Duong Province.

The project aims to improve environmental pollution caused by urban wastewater in areas of Binh Duong province including 3 cities: Thuan An, Di An, Tan Uyen.

The project invests in building a new urban wastewater collection and treatment system for Tan Uyen city, expanding the collection network and increasing the capacity of wastewater treatment plants for Thuan An, Di An, Tan Uyen cities; improving the wastewater management capacity of Binh Duong province; enhancing water security for the downstream areas of the Saigon and Dong Nai rivers, especially Ho Chi Minh City with about 40% of the water supply for the city taken from the Dong Nai river.

The Southern Waterway and Logistics Corridor Development Project has a total investment of VND 3,901.602 billion; of which the WB loan (IDA is a very preferential loan source of the International Development Association of the World Bank Group) is VND 2,493.731 billion (81.2 million SDR - equivalent to 107.67 million USD). The project's governing body is the Ministry of Construction (formerly the Ministry of Transport).

Mobilizing IDA funds will help the Project achieve its goal of improving infrastructure systems, reducing congestion, accidents, and reducing the cost of transporting goods by waterway through the renovation and upgrading of the East-West transport corridor connecting the Mekong Delta region and the renovation of the North-South transport corridor connecting the Southeast region with the Cai Mep-Thi Vai port cluster.

Can Gio International Transit Port is expected to be invested and constructed at the Thi Vai River mouth (opposite to Cai Mep Thi Vai Port Cluster). Therefore, the investment in this Project will also help connect the Mekong Delta region and the Southeast region with Can Gio International Transit Port.

The project will contribute to poverty reduction, socio-economic development, and ensuring national defense and security in localities in the Mekong Delta and Southeast regions.

The Project on Ethnic Minority Infrastructure Development to Respond to Climate Change in Phu Yen and Quang Tri Provinces, includes the Phu Yen component project and the Quang Tri component project. The Phu Yen component project has a total investment of VND 914.776 billion (equivalent to USD 39.413 million); of which ADB's OCR loan is VND 673.09 billion (equivalent to USD 29 million) and non-refundable aid is VND 23.21 billion (equivalent to USD 01 million), counterpart capital is VND 218.476 billion (equivalent to USD 9.413 million). The project's governing body is the People's Committee of Phu Yen province.

The Quang Tri provincial component project has a total investment of VND 921,698 billion (equivalent to USD 39,711 million), of which: ADB's OCR loan is VND 696,298 billion (equivalent to USD 30 million), counterpart capital is VND 225.4 billion (equivalent to USD 9,711 million). The project's governing body is the People's Committee of Quang Tri province.

The World Bank (WB) and the Asian Development Bank (ADB) are two strategic development partners that have accompanied Vietnam for decades, playing an important role in the process of poverty reduction, improving infrastructure, enhancing governance capacity, and promoting sustainable development.

The World Bank is one of the largest multilateral partners providing ODA loans and concessional loans to Vietnam (meeting about 35% of the Government's demand for foreign loans). As of April 2025, the World Bank has committed more than 180 loans, non-refundable aid and technical assistance to Vietnam, with a total value of about 26 billion USD (of which the total signed loan value is about 23 billion USD).

WB loans prioritize investment in programs and projects on essential infrastructure, transportation, energy, education, health, water, environment and agriculture.

ADB has also provided a total of more than 18 billion USD in loans and grants to Vietnam since the start of cooperation in 1993. ADB's programs and projects in Vietnam focus on developing transport infrastructure, clean energy, vocational education, rural development and enhancing capacity to adapt to climate change, especially in disadvantaged areas and ethnic minority areas.

In addition to financial support, the WB and ADB have always been important partners supporting the Vietnamese Government through providing non-refundable technical assistance on project preparation, policy advice, and improving governance and management capacity.

The signing ceremony took place within the framework of activities on the sidelines of the Partnership for Green Growth and the Global Goals 2030 Summit (P4G Summit) in Vietnam, contributing to enhancing Vietnam's reputation in the international arena and affirming the Government's strong commitment to implementing sustainable development goals./.

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