The agreement was signed by the State Bank of Vietnam and the ADB in Hanoi on February 23.

The biggest loan, valued at US$108 million, is for a project on infrastructure development in northern mountainous provinces. It will focus on upgrading 600 km of rural roads as well as traditional village or district markets in 15 poorest provinces in the northern mountainous region.

The project also aims to improve infrastructure management capacity and living conditions for poor highlanders.

A US$75 million loan will go to the second phase of upgrading the transport system in the northern part of the greater sub-Mekong region. The money will be spent on upgrading 340 km of roads, and repairing and building transport projects.

The final loan worth US$27 million is for the second phase of controlling contagious diseases in the sub-Mekong region. It is aimed at improving the competence for workers, especially those at village or district levels, who are in charge of controlling contagious and tropical diseases.