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Vietnam to borrow nearly $2.5bn in ODA loans for infrastructure projects in Mekong Delta

Vietnam to borrow nearly $2.5bn in ODA loans for infrastructure projects in Mekong Delta

Thursday, July 20, 2023, 19:32 GMT+7
Vietnam to borrow nearly $2.5bn in ODA loans for infrastructure projects in Mekong Delta
Vietnam will borrow nearly $2.5 billion in ODA loans for 16 sustainable development projects in the Mekong Delta to adapt to climate change. Photo: Chi Quoc / Tuoi Tre

The Vietnamese government has issued a resolution on the mobilization of official development assistance (ODA) loans totaling nearly US$2.5 billion for 16 infrastructure projects in the Mekong Delta.

The country will borrow the loans from six foreign partners, including the Asian Development Bank (ADB), the French Development Agency, the German government-owned development bank KfW, the Japan International Cooperation Agency (JICA), the Export-Import Bank of Korea (KEXIM), and the World Bank.

The projects were proposed by the Ministry of Agriculture and Rural Development, the Ministry of Transport, and 13 Mekong Delta cities and provinces.

Most of the 16 sustainable development projects in the delta region are dedicated to traffic infrastructure, though some are related to climate change response and freshwater reservoir projects.

The traffic infrastructure project with the highest estimated investment is a coastal corridor road in Tra Vinh Province which carries a price tag of nearly VND9.2 trillion ($389 million). The government planned to source the capital for it from ADB.

The projects with the second- and third-highest estimated investments are a seaside road in Ca Mau Province and a coastal road linking Ben Tre, Tien Giang, and Tra Vinh Provinces, which require VND8.31 trillion ($351.4 million) and VND7.9 trillion ($333.8 million), respectively. Loans for these two projects will be borrowed from KEXIM.

In addition, the government will take out ODA loans from the World Bank for a project to upgrade National Highways 53, 62, and 91B, and the Mekong Delta climate resilience and integrated transformation project, which cost nearly VND7.2 trillion ($304.2 million) and over VND6.6 trillion ($279 million), respectively.

A loan from JICA will be used for a project to develop traffic networks to adapt to climate change in the Mekong Delta, including an upgrade and expansion of a National Highway 61C section between Can Tho City and Kien Giang Province which needs an investment of VND6.4 trillion ($270.6 million).

The government also approved the re-lending of 10 percent of its foreign loans to 14 projects in the delta region.

Localities must bear responsibility for the necessity and effectiveness of projects and their ability to pay loans and allocate corresponding capital, according to the resolution.

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Thanh Ha - Ngoc An / Tuoi Tre News

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