WB sponsors local development funds

The signing ceremony of the financing agreement and related legal documents relating to Project on local development funds, Hà Nội, August 12, 2009 – Photo: VGP

Accordingly, the WB will contribute US $190 million to the project which has the total capital of US $198.7 million.

The WB-sponsored credit is a long-term loan lasting for 40 years, including a 10-year grace period.

The project aims at improving the efficiency of local development funds through mobilizing private sector’s capital sources to upgrade infrastructure and edge financial, technical, environmental and social management capacity.

Việt Nam needs a huge financial source to modernize its infrastructure nationwide, thus the project will take an important role in easing the country’s financial thirst, said Governor Nguyễn Văn Giàu.

Effective and sustainable performance of these funds is one of the key factors to stimulate the participation of foreign and domestic organizations and individuals so as to boost economic advancement at local level, he added.

By Hải Minh