Contact:
In Hanoi: Nguyen Hong Ngan (84-4) 934 6600 – 234
nnguyen5@worldbank.org
Hanoi, November 22, 2007 – The State Bank of Vietnam and The World Bank today signed credit agreements and related documents for four projects, worth US$ 712 million for Vietnam’s education and infrastructure development.
Out of that total, the World Bank will provide US$ 457 million in concessional credit under IDA (International Development Association) terms for the projects, namely the Second Higher Education Project, Mekong Delta Transport Infrastructure Development Project, Hanoi Urban Transport Development Project, and additional financing of US$ 25 million for the ongoing Mekong Transport and Flood Protection Project.
“I am very delighted to see many projects on the table for signing today.” World Bank Country Director for Vietnam, Ajay Chhibber said at the signing ceremony.
“This reflects the fact that Vietnam continues to be high on the World Bank’s priority list, and we expect these projects will help with the implementation of Vietnam’s development plan.” added Ajay.
Among the projects, the Second Higher Education Project aims to increase the quality of teaching and research in universities, in ways that improve the employability of graduates and the relevance of research. The Projects will focus on capacity building for policy development, for university teaching and research. The World Bank will provide US$ 59.4 million in preferential credit, out of the total US$ 70.5 million in investment.
Meanwhile, the Hanoi Urban Transport Development Project aims to increase urban mobility in targeted areas in Hanoi by increasing the use of public transport in two existing and one new corridors; and reducing travel times between the city center and the west and northwest sections of the city.
The Project is also designed to address both urban traffic and environment issues, which are the key challenges to urban management in ways that can later be replicated nationwide, according to Ajay Chhibber.
For this purpose, the Project receives US$ 9.8 million from the Global Environment Facility, managed by the World Bank, apart from the US$155 million provided in concessional credit from the International Development Association of the World Bank.
The Mekong Delta Transport Infrastructure Development Project aims to improve access to markets by businesses, farmers and the poor and lower transport costs. This will be done through the alleviation of key physical and institutional bottlenecks of the main transport corridors in the region. The project costs US$ 312 million, out of which US$ 207 million will come from the World Bank, US$ 25 million from the Australian Agency for International Development, AusAid and the rest from the Government of Vietnam.
The World Bank will finance US$ 25 million as additional investment in the Mekong Transport and Flood Protection Project for the construction of the Ganh Hao II Bridge in Ca Mau City. It will also rehabilitate 58 kilometers of selected sections of national and provincial roads, all in the extended road transport system of the Mekong Delta. The costs of approximately US$ 2.2 million for related resettlement costs will be financed by the Government of Vietnam.
Last week, the two sides also signed an infrastructure project, the Ho Chi Minh City Investment Fund for Urban Development Project.
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