ADB helps boost economic growth in north central region
The Asian Development Bank’s (ADB) Board of Directors has approved loans totaling US$149 million to help improve basic infrastructure and promote inclusive and sustainable economic growth that will benefit over 1 million people in four provinces in the north central coastal region of Vietnam.
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ADB’s assistance for the Basic Infrastructure for Inclusive Growth in the North Central Provinces Sector Project includes a regular loan of US$52 million and a concessional loan worth US$97 million. Both loans will be financed from the ordinary capital resources where most of ADB’s lending come from.
The total cost of the project is US$203.52 million, with the Government of Vietnam contributing US$54.52 million.
According to Eric Sidgwick, ADB’s Country Director for Vietnam, Vietnam has been one of the fastest growing economies in the world since 2010, with an annual growth average of about 6% as of 2015.
But growth has not been significantly reflected in rural areas, particularly in the north central provinces, he noted.
“ADB’s assistance will help promote inclusive growth and bridge the development gap by integrating cities and the rural areas in the region,” he said.
Economic development in the project provinces, namely Ha Tinh, Nghe An, Quang Binh, and Quang Tri, has been constrained by the fragmented coverage of basic infrastructure, with the 2015 poverty rate reaching 13% compared to the 7% national average.
Moreover, the provinces are extremely vulnerable to natural disasters and are predicted to have the country’s highest increase in annual mean temperature at 1.7% and annual rainfall shooting up by 20%.
To address these issues, the project will improve connectivity among the provinces by upgrading and constructing about 214 kilometers of climate-resilient provincial and district roads, which will benefit more than 900,000 people.
It will boost business development through the construction and upgrading of rural water supply, flood protection, irrigation, and port services, while improving the capacity of the provincial governments, particularly in public asset management.
The project is expected to be completed by the first quarter of 2023.
