ADB to Give Additional Funds for Vietnamese Water Project

The Asian Development Bank (ADB) is to provide a loan of $60m towards the Phuoc Hoa water resources project in Vietnam.

French development agency Agence Francaise de Developpement (AFD) will also extend a further $25m in co-financing for the project.

The project includes the construction of two new irrigation systems for agricultural development, the protection of natural habitats, land acquisition and resettlement costs for households affected by construction activities.

ADB and AFD have pledged to provide $124m for the initiative, which includes building irrigation systems and water supplies for domestic and industrial use.

The original loan financed the construction of the Phuoc Hoa transfer canal to divert water from the Be River to a reservoir on the Saigon River.

ADB senior natural resources specialist Dennis Ellingson said the project aims to provide additional water to the Saigon and Vam Co Dong river basins to develop agriculture and supplement existing supplies in Ho Chi Minh City and its neighbouring provinces.