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ADB finances US$60 million to improve climate resilience of infrastructure for Binh Dinh, Quang Nam

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Viet Nam
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Govt. Viet Nam
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VGP - The Asian Development Bank (ADB) approved a US$60 million financing package to improve the climate resilience of transport and water supply infrastructure in Viet Nam’s south-central coastal provinces of Binh Dinh and Quang Nam, especially in remote upland districts with large ethnic minority communities.

The Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project I will upgrade 121.8 kilometers of roads using climate-resilient design standards, construct 115 kilometers of water supply pipelines, and help provide reliable weather and climate data in a timely, cost-effective manner. About 243,000 people, including 126,300 from ethnic minority groups, are expected to benefit from the project.

The project aims to improve the living conditions of ethnic minority communities in remote areas of Viet Nam, said ADB Programs Officer Nguyen Hong Anh.

It will better link remote rural production sites with markets and processing facilities for crops such as acacia and boost beneficiaries’ access to health, education and market services. The project will also expand access to safe water supply and irrigation, Nguyen added.

The financing package includes US$58 million in regular ADB loans and a US$2 million grant from ADB’s High-Level Technology Fund. The grant will fund the supply and installation of data systems for climate risk management. In addition, the project will include US$21.73 million in financing from the Government of Viet Nam.

About 87 percent of the ethnic minority households in Binh Dinh and 55 percent in Quang Nam are poor or near poor, compared with the provincial poverty rates of 5.5 percent and 10.3 percent, respectively.

Less than 60 percent of households within the project area have access to reliable and safe water supply. Limited access to water and poor sanitation have led to high incidence of waterborne diseases and poverty.

Viet Nam faces a high risk of disasters and climate change. The country experiences an estimated annual average loss of US$2.37 billion due to natural hazards, especially floods, with Binh Dinh and Quang Nam among the most affected areas.

By Hoang Ha