ADB, BIWASE sign deal to provide sustainable water service

Tuesday, Nov 17, 2020 14:03

A corner of the water treatment system of the Tan Hiep Water Treatment Plant (WTP) in the southern province of Binh Duong.— Photo BIWASE

The Asian Development Bank (ADB) and Binh Duong Water Environment Joint Stock Company (BIWASE) recently signed an US$8 million loan to expand the Tan Hiep Water Treatment Plant (WTP) in the southern province of Binh Duong, one of the fastest-developing provinces of Viet Nam.

The expansion will increase production capacity, install additional water intake pumps, and build raw water transmission pipes from the Dong Nai River intake facility.

The upgrade will help to meet the rising water demand of residential and industrial customers in Ben Cat Town, Tan Uyen Town, new Binh Duong City, and Thu Dau Mot City, where industrial zones provide jobs for nearly 1.3 million locals and more than 500,000 foreigners.

The financing package also includes a parallel co-financing of $8 million from the Japan International Cooperation Agency.

A further $500,000 in technical assistance will be provided by the e-Asia and Knowledge Partnership Fund, established in 2006 by the Republic of Korea to help ADB’s developing members meet their development goals through the creation and sharing of experience, information, and knowledge.

“This financing will deliver sustainable and efficient water supplies in this fast-growing province, spurring its future growth and contribution to the broader economy,” said infrastructure finance division director for Southeast Asia, East Asia, and the Pacific at ADB's Private Sector Operations Department Jackie B Surtani.

“It is a strong signal to other international financiers that private sector commercial financing of Viet Nam’s water sector is feasible and attractive. We are also very happy to work with the Japan International Cooperation Agency on this transaction to support water sector development in Viet Nam,” said Surtani.

BIWASE’s chairman of the board of directors Nguyen Van Thien said the company highly valued the long-term relationship with ADB, which goes back to 2002 when they participated in the third provincial towns water supply and sanitation project.

“We appreciate the continued support from ADB in providing a one-stop solution to enable BIWASE to transition from sovereign financing to standalone private sector financing as it continues on its growth path. We look forward to ADB’s continued engagement with the water sector in Viet Nam and hope to work with ADB again in the future,” Thien said.

The technical assistance will provide capacity building on financial management and climate-resilient business and operational planning. It will also enhance the legal foundation of the business and operational framework between BIWASE and the Binh Duong provincial People’s Committee. – VNS

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