The World Bank will give Vietnam loans totaling US$620 million to aid the country's efforts to improve infrastructure and address development challenges, according to the bank's press release issued Tuesday.
Of the five projects which will benefit from the loans, the plan to scale up and reinforce Vietnam's electricity transmission system will receive $180 million, according to an agreement signed Tuesday between the World Bank and State Bank of Vietnam.
A total of $175 million will be allocated for a project to upgrade urban accessibility and capacity for urban transport management and planning in the northern city of Hai Phong, while another $65 million will go to providing better sanitations for more than 600,000 people in the central coastal towns of Dong Hoi, Quy Nhon and Nha Trang.
Another $150 million will be set aside to strengthen healthcare waste management policies nationwide and support at least 150 hospitals to provide a better environment, improved infection control and occupational safety.
The remaining $50 million will be used for a governmental socio-economic development project for disadvantaged communes of ethnic minorities and in mountainous area, the bank said.
Victoria Kwakwa, country director for World Bank in Vietnam, said: "Vietnam's Socio Economic Development Strategy 2011-2020 recognizes that the country faces challenges in institutional reforms, as well as huge infrastructure gaps and constraints to environmental sustainability.
"The loan and credits signed today are expected to help with necessary infrastructure development, provide support to modernize the government's approach to infrastructure development and management, address important environmental challenges, and recognize the government's reforms in pro-poor policies."