Under the programme, a loan scheme, financed with EUR30 million, will provide the consultation services for the technical support to provincial water supply companies in An Giang, Ben Tre, Dong Thap, Tra Vinh, and Vinh Long provinces and Can Tho city.

The remaining EUR2 million in the form of non-refundable aid, will help to increase the capacity of the Vietnam Development Bank (VDB).

As planned, from 7-15 projects in the six-targeted provinces will receive loans from the programme.

In Vinh Long province, three projects worth a total VND142 billion, including VND95 billion from loans, will be carried out to build two new water supply plants and increase the capacity of the Truong An plant.

Once completed in 2011, the projects are expected to supply clean water to residents in new urban and industrial areas in the targeted provinces which will help to increase the amount of people in urban areas that have access to clean water from 75 percent to 85 percent.