Vietnam gets USD 190 million WB loan
The project costs a total of USD 198.7 million, so the Vietnamese side will finance the balance of USD 8.7 million. These development and investment funds are mandated to attract private investments to develop local urban infrastructure.
The Ministry of Finance will manage this long-term WB loan and lend it on to the local funds through its project management unit, according to the State Bank of Vietnam (SBV).
SBV governor Nguyen Van Giau said at the signing ceremony in Hanoi that there was an increasing demand for capital to develop infrastructure in cities and provinces due to fast urbanization.
Lack of infrastructure and that of investment in it will hinder the country’s economic development and growth, so investing in the local development and investment funds is indispensable, Giau noted.
With the new loan, the total amount of preferential loans from the WB has risen to US$9.83 billion in 91 projects in Vietnam, excluding technical grants.
