A newly-built road in the central coast province of Binh Dinh. The province is one of six selected ones to receive ADB's additional financing in rural infrastructure. — Photo binhdinh.gov.vn

HA NOI (Biz Hub) — The Government and Asian Development Bank (ADB) on December 26 signed a loan agreement for $85 million in additional financing to expand investments in rural infrastructure in six central provinces.

The selected provinces include Binh Dinh, Binh Thuan, Ha Tinh, Ninh Thuan, Phu Yen and Thua Thien-Hue.

The original Integrated Rural Development Infrastructure Sector Project was approved by the ADB board in October 2007 at a cost of $168.17 million, out of which ADB provided $90 million. The project targeted critical rural infrastructure in 13 provinces in the Central Region, including rural roads, irrigation drainage and flood control systems, rural markets, domestic water supply schemes and coastal works.

As of August 2014, the project has achieved its planned objectives and has made a positive contribution to meeting the provincial infrastructure development targets for boosting agricultural productivity and employment opportunities, improving access to public services, as well as reducing the exposure of the rural population to natural disasters.

Despite these achievements, much work is needed to reduce infrastructure constraints to production, diversification, and economic growth. The $85 million loan for the additional financing of the project is ADB's response to the Government's priority in rural development and consistent with ADB's country partnership strategy, 2012-2015, for Viet Nam. The additional financing will support the improving and expanding irrigation infrastructure over four years in the six selected provinces, based on their positive performances in the initial project. — VNS