The Nhon Trach water supply project. — Photo baoxaydung

HCM CITY (Biz Hub) — The Government on Wednesday assigned the HCM City Development Joint Stock Bank (HD Bank), on behalf of the Ministry of Finance, to re-lend a package of an ODA loan of VND3 trillion (US$138.24 million) from Japan International Co-operation Agency (JICA) to carry out the second phase of the Nhon Trach water supply project.

This is the first time a commercial joint-stock bank has been assigned to re-lend and share 20 per cent of risk with the ministry. The bank will be responsible for disbursement; getting the loan, interest and fees back; and supervising and managing the capital use during disbursement.

Phase two of the water supply project has total capital of VND3.6 trillion ($171 million). ODA capital from JICA accounts for 85 per cent. The project is expected to meet the increased demand on water in the southern province of Dong Nai. — VNS