Hanoi - The World Bank and the State Bank of Vietnam on
Thursday signed two credit agreements to provide Vietnam with a total
of 300 million dollars to help poor and rural communes improve the
quality of life.
The credits from the International Development Association, the
World Bank's concessional lending arm, will be injected directly into
the state budget.
'Both operations reaffirm the World Bank's strong commitment to
Vietnam's growth and poverty reduction efforts at a time when the
country is confronted with adverse effects from the global economic
slowdown,' said Victoria Kwakwa, country director for the World Bank
in Vietnam.
The World Bank is providing 100 million dollars to the state
budget in support of government's P135 Phase 2 program, which
provides support to over 2,000 poor communes in 47 of Vietnam's 64
provinces.
This funding will support government and community efforts to
reduce poverty in ethnic minority and other remote communities by
equalizing access to social infrastructure and services.
Program 135 Phase 2 has funded thousands of kilometers of improved
roads, rural schools, potable water supplies, improved seed and
livestock, and boarding support to encourage primary school
attendance.
The World Bank is also providing 200 million dollars in additional
financing for the ongoing Rural Energy II project so that an
estimated 550,000 additional households can benefit from reliable and
affordable electricity.
Vietnam is considered an example of a successful electrification
programme. From 1993 to the end of 2008, the access rate of rural
households to power increased from 14 per cent to 94 per cent.
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