ADB Finances Vietnam US$38Mln to Fight Communicable and Emerging Lifestyle Diseases

The Asian Development Bank (ADB) and the Government of Vietnam recently signed a US$38 million loan and grant package to help combat communicable diseases and emerging lifestyle diseases by strengthening the country’s preventive health system. The Ministry of Health is the executing agency for the project, which is due for completion in December 2011.

 

ADB will provide a US$27.9 million loan, which will cover 59 per cent of the project’s estimated total cost of US$47.5 million. The loan will come from ADB’s concessional Asian Development Fund (ADF) and will carry a 32-year term, including a grace period of 8 years. Interest rate is set at 1 per cent per annum during the grace period, and 1.5 per cent per annum thereafter. A US$10.14 million grant from the ADF will also be given to support various activities aimed at controlling communicable diseases. The Government will shoulder the balance of US$9.5 million equivalent.

 

Vietnam’s health profile is becoming more heterogeneous, with communicable diseases remaining a major concern in poorer areas and noncommunicable diseases, such as cardiovascular diseases, diabetes, and cancer, dominating middle-income areas. The country is also at risk from emerging communicable diseases like HIV/AIDS, SARS, and avian flu.