The International Finance Corporation, a member of the World Bank Group, on Tuesday announced it will provide a loan worth US$15.3 million to DNP Water to expand the use of clean water among households in urban areas.

DNP Water is a member of Dong Nai Plastics Corporation. The company plans to upgrade its water treatment and supply capacity by five times by 2025 to reach 1 million cu.metre per day.

With IFC’s loan, DNP Water would build two large-scale water treatment plants and buy stakes at equitised water supply companies.

The IFC’s lending for DNP Water could amount up to $24.9 million to support the growth strategy of the company.

According to Kyle Kelhofer, IFC’s Country Manager, IFC’s funding was expected to promote private investment in the water treatment and supply sector of Viet Nam.

By 2020, Viet Nam would need $1 billion each year to invest in urban clean water supply systems to meet demand. Currently, only 35 per cent of the country’s population had access to tap water, according to estimates by the World Bank Group.

With a limited budget, Viet Nam was calling for private investment in producing tap water and expanding the water supply network. — VNS