At the signing ceremony. — VNA Photo

HANOI (Biz Hub) — The State Bank of Vietnam on May 23 signed with the Asian Development Bank two agreements on loans and non-refundable aid worth a total 249 million USD to help Vietnam improve water supply services and upgrade roads.

Among these there is a 212 million USD credit, part of the 1 billion USD credit package for the Water Sector Investment Programme approved in 2011. The programme is designed to provide running water to an estimated 500,000 poor households.

The new disbursement will fund sub-projects to build water supply stations and water pipes for 94,000 households in the provinces of Binh Duong, Dak Lak, Quang Tri, Thua Thien-Hue and the cities of Da Nang and Hai Phong.

The other agreement covers a 25 million USD loan from ADB and a grant of 12 million USD from the Australian Agency for International Development (AusAid), which will provide funds for improving the overall quality of the Greater Mekong Sub-region (GMS) Southern Coastal Corridor project.

Through the loan agreement, Vietnam and ADB are looking towards the promotion of economic growth along the corridor through enhancing connectivity with neighbouring countries, thus cutting down transport expenditures and facilitating the flow of people and goods among GMS countries. — VNA