Representatives of HD Bank and Dong Nai Water Supply Joint Stock Company at the signing ceremony. – Photo baodongnai.com.vn

DONG NAI (Biz Hub) – The Dong Nai Water Supply Joint Stock Company and HCM City Housing Development Bank (HD Bank) signed a contract to finance Phase 2 of the Nhon Trach Water Supply System.

The contract, signed on April 28, allows Dong Nai Water JSC to borrow nearly VND3 trillion (US$132 million) from the Japan International Co-operation Agency (JICA) with a repayment period of 25 years.

The second phase of the project has a total capital of about VND3.57 trillion and will be implemented in seven years, beginning from 2016.

Upon completion, the plant's capacity will increase from 100,000 cu.m to 200,000 cu.m per day, to meet the growing demand from households and businesses.

Dinh Quoc Thai, chairman of the provincial People's Committee, said the southern province of Dong Nai currently has a population of three million with 29 industrial parks, which creates a huge demand for water.

The project also helps to reduce drilling for underground water, which depletes water resources and creates environmental pollution, he added. — VNS