(VOV) – The State Bank of Vietnam (SBV) and the World Bank (WB) on January 14 signed a US$ 250 million credit to improve the efficiency and sustainability of the road asset management and maintenance practices in Vietnam.
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The funding, to support the Vietnam Road Asset Management (VRAMP), will come from the International Development Association, the WB Group’s funding resource for low income country.
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“The road sector has significantly contributed to Vietnam’s recent rapid socioeconomic development by providing basic access for communities to markets, education, and health facilities, connecting provinces to national centers and reducing the cost of moving people and goods across the country,” said Victoria Kwakwa, the World Bank Country Director for Vietnam.
The project that WB is supporting will further contribute to the improvement and maintenance of the existing road network to maintain Vietnam’s strong economic performance, local business development, and improved social capital, she added.
The Australian Government will also provide AUD1.7 million to this project through a Trust Fund, managed by the WB, to the development and implementation of a comprehensive Road Asset Management System.
“Australia is providing assistance to Vietnam to build much needed transport infrastructure that will connect farmers and manufacturers to both domestic and international markets,” said Australian Ambassador Hugh Borrowman.
Apart from the Road Asset Management System, the project will help advance the reform agenda with increased usage of performance-based contracts and support the performance of the Road Maintenance Fund. It is anticipated that successful implementation of the VRAMP will lead to a more effective road preservation strategy, a more optimal road asset management, and the efficient programming of road network operations.
The project will directly benefit road users in 13 northern provinces in Vietnam. It will improve critical links in the national highway network and increase efficiency of public expenditure on road asset management.