ADB to lend $80 million for road upgrades

News - The Asian Development Bank (ADB) and the Vietnamese Government yesterday signed a loan agreement of US$80 million to fund road upgrades in six remote provinces in the northern mountainous region.

The loan would finance improvements on 300km of unpaved and frequently impassable roads in disadvantaged localities in the provinces of Bac Kan, Cao Bang, Ha Giang, Tuyen Quang, Yen Bai and Lao Cai, targeting improved connectivity to remote ethnic communities and creating economic opportunities for local residents.

"Better, safer, faster and more reliable road links will not only reduce the area's isolation but also bring more opportunities for trade and investment," said ADB country director for Viet Nam Tomoyuki Kimura.

The project would also help reduce poverty and promote sustainable growth in these provinces, he said.

The provincial People's Committees would be in charge of implementing the improvements, which were expected to be completed by the end of 2016.

An additional $2.7 million will be provided by the Nordic Development Fund to develop climate proofing measures in the design of roads, most of which were located in areas prone to natural disasters.

The Government of Viet Nam approved the list of road projects in May.

About 30 per cent of the population of these northern mountainous provinces live in poverty. Poor rural infrastructure was a major obstacle to socio-economic development of these areas.