ADB loans $212 million to Vietnam for improving water services delivery

The Asian Development Bank (ADB) December 18 announced it will provide $212 million to continue a project to improve water services delivery to more than three million people, including 94,000 households that will for the first time receive piped water in six cities and provinces of Vietnam.

The funding is the second tranche of a $1billion loan framework approved in 2011, designed to benefit an estimated 500,000 poor households will receive their first-ever piped water connection.

In 2006, Vietnam reached 92 percent overall coverage for urban water supply with an uneven level of service, but over the next 10 years, more than 15 million people will receive improved water service under ADB financing. 

This tranche of the financing will provide water supply infrastructure in the southern province of Binh Duong, the highlands province of Dak Lak, the central city of Da Nang City, Thua Thien-Hue province, Quang Tri province and the northern city of Hai Phong.

Water supply companies will undertake subprojects, which include the construction of water production plants, pumping stations, transmission and distribution pipelines. Under the second tranche, nine water companies will borrow to prepare an investment project for financing under a subsequent tranche..

Two decrees issued by the Vietnamese government transformed water services from a social to an economic commodity in recognition of the role clean water plays in the country’s economic advancement.

The progressive water legislation, supported by ADB, requires water supply companies to operate on full cost recovery and to reduce by half non-revenue water, which is lost to leaks and other inefficiencies, from 30% in 2010 to 15 percent by 2025.

By B. Minh – Translated by Nha Tran

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