WB Lends Vietnam another $300 Million for Better Road and Protection of Coastal Forests

Tuan Minh

21:36 23/06/2017

BizLIVE - The new financing will support Vietnam’s efforts to improve transport connectivity in the countryside and to protect forests along eight coastal provinces.

WB Lends Vietnam another $300 Million for Better Road and Protection of Coastal Forests

Farmers raise shrimp in mangrove forests in Bac Lieu province. Photo: baobaclieu.vn

The World Bank has approved two new loans worth a combined $300 million for Vietnam to improve transport connectivity in the central region and to protect forests along eight coastal provinces.
The two projects to receive financing are the Central Highlands Connectivity Improvement Project and the Forest Sector Modernization and Coastal Resilience Enhancement Project, the bank has said in a press release.
Half of the funding will be channeled to the connectivity improvement project, which aims to upgrade 142 kilometers of National Highway 19, and strengthen safety and resilience to natural disasters. Communities in Binh Dinh and Gia Lai provinces will benefit from easier access to markets, reduced travel time, and better road safety.
The remaining $150 million will support the management of coastal forests in Quang Tri, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Thua Thien Hue, Quang Ninh and Hai Phong provinces.
Financing for the two projects is supported by the International Development Association (IDA), the World Bank's fund for low income countries. Vietnam is expected to graduate from this source in July.

The World Bank is Vietnam’s largest creditor, with debt owed to the bank jumping 10.5-fold between 2001 and 2015 period to $12.08 billion, according to the finance ministry.

TUAN MINH