World Bank provides $160 mil for Vietnam urban upgrade

The State Bank of Vietnam and the World Bank signed a US$160 million additional credit agreement on September 10 for financing an urban upgrade project carried on simultaneously in Can Tho and Hai Phong cities, Nam Dinh province, and Ho Chi Minh City.

HCMC’s Tan Hoa-Lo Gom Canal, which is clogged by household refuse. With a grant from the World Bank, the city hopes to complete a project to clean it. (Photo: Tuoi Tre)

The grant will help ease the impact of high construction-material prices and a shortage of funds.

Of the amount, $128.8 million is meant for HCM City, $11.2 million for Can Tho, $10.45 million for Hai Phong, and $9.15 million for Nam Dinh, the central bank said.

The project, which was begun in 2004 with an initial World Bank loan of $222.5 million, seeks to eliminate poverty in the four localities by improving living conditions for low-income people.

It has helped upgrade infrastructure, provide houses to the poor, and set up a fund for lending to low-income people to buy houses.

The grant marks the completion of financing by the World Bank to Vietnam in 2009 when it signed 10 credit agreements worth nearly $1.5 billion.

By Ham Yen – Translated by Truc Thinh

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