WB provides additional aid to rural transport project

VGP - The World Bank (WB) will funnel an additional US $97 million into a rural transport project to reduce travel cost and increase market accessibility for five million people in 32 provinces across Việt Nam.

March 09, 2012 5:29 PM GMT+7

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A document to this effect was signed in Hà Nội on March 9 between representatives from the State Bank of Việt Nam and the WB.

The sum will be sourced from the International Development Association - the WB’s funding resources for low income countries.

The Additional Financing for the Third Rural Transport Project aims to increase the number of communities connected to new and improved roads all year round.

It will help improve the rural road conditions through better management and maintenance of the network and enhance the institutional effectiveness to plan, implement and maintain improvements in the rural transport.

According to a press release of the WB, the Third Rural Transport Project has rehabilitated an approximately 2,100 km of roads, and completed the maintenance of approximately 13,000 km of district roads and bridges.

The improved transport system is expected to benefit up to 5 million people in all 32 participating provinces in central and northern Việt Nam, including 14 provinces in the mountainous areas.

Thanks to heavy investments, Việt Nam’s road network has expanded rapidly, from 225,000 km in 1999 to 256,000 km in 2009. It now includes 196,404 km of rural roads and serves around 75% of the entire national population and 90% of the nation’s poor who live in rural areas.

However, the general quality of the rural roads in Việt Nam is poor. Only about 30% of roads have been paved, while most district and commune roads remain gravel or unpaved. Moreover, the budget allocated for maintenance only meets 25% of the need.

By Thùy Dung