The Asian Development Bank (ADB) and the Government of Vietnam Friday signed a $80 million loan agreement for a road rehabilitation project to improve connectivity in six remote northern provinces of Bac Kan, Cao Bang, Ha Giang, Tuyen Quang, Yen Bai and Lao Cai, ADB announced Friday.
The loan is also to create economic opportunities for poorest people in the country.
The signatories included State Bank of Vietnam Governor, Nguyen Van Binh, and ADB Country Director for Viet Nam, Tomoyuki Kimura.
The loan supports the Government’s efforts to improve the connection between mountainous rural communities and major national highways and also the Greater Mekong Subregion corridors.
The road rehabilitation project will improve about 300 kms of unpaved and frequently impassible roads in six mountainous provinces. Most of the project roads are in the areas prone to natural disaster, such as flash floods, which will worsen as a result of climate change. The Nordic Development Fund is providing a grant of €2 million equivalent to develop climate proofing measures in the design of road rehabilitation.
The project will be implemented by Provincial People’s Committees in the six provinces. The project is expected to be completed in December 2016.
“Better, safer, faster and more reliable road links will not only reduce the area’s isolation but also bring more opportunities for trade and investment which will substantially help reduce poverty and support inclusive and sustainable growth in the disadvantaged provinces.”, said Mr. Kimura.
