ADB offers US$8 million credit package to support water services in Vietnam

Tuesday, 2020-11-17 16:23:42
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The Tan Hiep Water Treatment Plant in Binh Duong Province.
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NDO – The Asian Development Bank (ADB) and Binh Duong Water Environment Joint Stock Company (BIWASE) have signed an US$8 million loan to expand the Tan Hiep Water Treatment Plant in Binh Duong Province, one of the fastest-developing provinces of Vietnam.

The expansion will include the enhancement of the plant’s production capacity, the installation of additional water intake pumps, and the building of raw water transmission pipes from the Dong Nai River intake facility.

The upgrades will help to meet the rising water demand of residential and industrial customers in Ben Cat Town, Tan Uyen Town, Binh Duong New City, and Thu Dau Mot City in the province, where industrial zones are providing jobs for a large number of local and foreign workers.

A further US$500,000 in technical assistance will be provided by the e-Asia and Knowledge Partnership Fund, established in 2006 by the Republic of Korea, to help ADB’s members meet their development goals through the creation and sharing of experience, information and knowledge.

Jackie B. Surtani, Infrastructure Finance Division Director for Southeast Asia, East Asia and the Pacific at ADB’s Private Sector Operations Department, said that the finance will deliver sustainable and efficient water supplies in Binh Duong, spurring its future growth and contribution to the broader economy.

It is a strong signal to other international financiers that private sector commercial financing of Vietnam’s water sector is feasible and attractive, he added.

BIWASE’s chairman of the board of directors Nguyen Van Thien spoke highly of the company’s long-term relationship with ADB, while expressing his appreciation regarding the bank’s continued support in providing a one-stop solution to enable BIWASE to transition from sovereign to standalone private sector financing as it continues on its growth path.