ADB grants 70 mil. dlr loan to Vietnam

MANILA, Oct. 7 Kyodo The Asian Development Bank (ADB) said Thursday it has approved a 70 million dollar loan to improve the drainage and sewer systems in Vietnam's Ho Chi Minh City.

"The project is aimed at reducing environmental health hazards, improving living conditions, and sustaining economic growth through improved infrastructure," the Manila-based bank said in a statement.

The bank stressed the need to improve the systems, saying the old infrastructure has become "inadequate due to aging and overloading because of rapid urbanization."

"Drainage and sewerage systems will be upgraded to prevent flooding in three of the city's most densely populated districts of about 240,000 people," the statement said.

It added, "Solid waste management will be improved to benefit the entire population of six million in the city. People live amid unhealthy surroundings due to insufficient solid waste collection that has led to the illegal disposal of solid waste in sewers and waterways."

According the bank, the Ho Chi Minh City Environmental Improvement Project will raise the capability of urban service delivery companies to provide, operate, manage and maintain basic infrastructure and services more efficiently.

Moreover, it said the project will also improve the industrial pollution control and air quality monitoring.

The loan from the Asian Development Fund, is repayable over 32 years, including a grace period of eight years, with an interest charge of 1% per annum during the grace period and 1.5% per annum thereafter, the bank said.

The bank said it will cover 70% of the estimated total project cost of 100 million dollars. The Department of Transport and Public Works and the Department of Science, Technology and Environment of Vietnam will be the executing agencies for the project, due to be completed in December 2005.

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