ADB Helps Improve Vietnam’s Water and Irrigation Systems

The Board of Directors of Asian Development Bank (ADB) recently approved a US$100 million concessional loan to rehabilitate one of Vietnam’s oldest and largest irrigation and drainage systems located in the heart of the Red-Thai Binh river basin.

 

The loan will fund education facilities to train engineers in water-related fields that are needed to meet the heightened demand of a rapidly growing economy. A total of 13,400 students and 800 faculty members will benefit from improved quality of education and improved learning and accommodation facilities at the new campus of the Water Resources University.

 

ADB will provide the loan from its Special Funds resources. The loan will have a maturity of 32 years with a grace period of 8 years and an interest rate of 1 percent every year during the grace period and 1.5 percent thereafter. Agence Française de Développement (AFD) will co-finance the project with a loan of 20 million euro. The government of Vietnam will provide counterpart financing of US$51 million for the project.