The Asian Development Bank (ADB) and the Government of Vietnam signed two loan agreements totaling $180 million on March 9, 2012, to help the country develop its irrigation system and improve urban infrastructure. A $110 million loan was signed for a project (NCSMRIS) to develop the Chu River irrigation system in northern Thanh Hoa province and the Ma River system in the south of the province. The project is part of the Government’s overall investment program for the NCSMRIS, which will increase water productivity, reduce rural energy use, and improve national food security. The NCSMRIS development project will support the Government’s plan to expand irrigation within the NCSMRIS project area from 15,700 hectares to more than 31,000 hectares. Through improving irrigation facilities and water supplies, the project is expected to benefit more than 119,495 households with about 466,000 people, including nearly 11,500 Thai and Muong ethnic minority households. Another $70 million loan from the ADB Asian Development Fund will finance the construction of urban infrastructure as well as upgrading and strengthening the urban management capacity of local governments in Viet Tri, Hung Yen and Dong Dang cities along the North-South Economic Corridor. Both loans have a maturity period of 32 years, with an eight year grace period. Interest will be charged at 1% during the grace period and 1.5% after that until the end of the loan's term. (nhandan.org.vn Mar 11)
