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Friday, August 29, 2003

ADB to lend Vietnam $975 mn over next three years

Reuters

Hanoi, August 28

The Asian Development Bank (ADB) said on Thursday that it plans to lend
Vietnam $975 million over the next three years for 19 projects in areas
including water and power development, education and health services.
The loan will come from annual commitments of $225 million from the bank's
Asian Development Fund and up to $100 million from its ordinary capital
resources, ADB said in a statement.

"Economic growth continues to reduce poverty in Vietnam, but as the pace of
poverty reduction is slowing and remains uneven, it is necessary to ensure
that its benefits reach the poor, through targeting when necessary,"
Alessandro Pio, principal programmes officer at the ADB in Hanoi, said in
the statement.

Final allocation of Vietnam's loan will depend "on availability of resources
and country performance", ADB added.

> From 1993 through 2002, the Manila-based ADB has provided to the communist
country 39 loans amounting to $2.5 billion and 132 technical assistance
grants totalling $92.1 million.

Among the projects the bank supports in Vietnam are development of the
private sector, agricultural diversification and better governance.

Despite posting the second-fastest economic growth rate in Asia after China,
around a third of Vietnam's 80 million population continues to live in
poverty.

The country depends on multilateral agencies like the ADB and the World Bank
for financing basic infrastructure, such as building roads and schools and
providing utilities.

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