Photo by Dan Viet newspaper
The State Bank of Vietnam and the World Bank Tuesday signed a credit agreement for US$250 million to improve the efficiency and sustainability of road asset management and maintenance practices.
The funding, to support the Vietnam Road Asset Management Project - VRAMP, will come from the International Development Association, the World Bank Group's funding resource for low income countries.
"The road sector has significantly contributed to Vietnam's recent rapid socioeconomic development by providing basic access for communities to markets, education, and health facilities, connecting provinces to national centers and reducing the cost of moving people and goods across the country," Victoria Kwakwa, the bank's Vietnam country head, said.
"The project that the World Bank is supporting today will further contribute to the improvement and maintenance of the existing road network to maintain Vietnam's strong economic performance, local business development, and improved social capital," she added.
The Australian government will provide A$1.7 million (US$1.5 million) for developing a comprehensive Road Asset Management System.
It is expected that the successful implementation of the VRAMP will lead to a more effective road preservation strategy, a more optimal road asset management, and efficient programming of road network operations.
The project will directly benefit road users in 13 provinces in northern Vietnam.
It will improve critical links in the national highway network and increase efficiency of public expenditure on road asset management through targeting of funding to sections of the highway network that are most in need.
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