The Asian Development Bank (ADB) will provide Vietnam with a US$45 million loan for the Central Region Rural Water Supply and Sanitation Sector Project.

The project, signed by ADB and the State Bank of Vietnam in Hanoi on February 2, is designed to support the country's efforts to achieve the national development targets and Millennium/Vietnam Development Goals relating to peoples’ access to a clean water supply and sanitation.

As many as 350,000 people in the six central coastal provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Nam and Binh Dinh will be provided with clean water and hygienic sanitation facilities.

Access to clean water and hygienic sanitation is critical for improving the health and living conditions of people in rural areas, said ADB Country Director for Vietnam Ayumi Konishi.

Mr. Konishi added that the project will reduce the burden on women and girls who are traditionally tasked with water collection and caring for sick family members.

Households in the project provinces will be provided with grants and credit to build latrines. Poor households will be supported with grants while those not designated as poor will receive credit through a revolving fund managed by the Vietnam Women’s Union.

To improve hygiene awareness, communal water and sanitation committees will be formed to support information and education activities, with at least 40 percent of the members to be women.

ADB’s loan will cover 90 percent of the US$50-million project. The loan has a 32-year term, including a grace period of 8 years. The Government of Vietnam and project beneficiaries will make up the balance of the cost with in-kind and cash contributions totaling $5 million.

The Ministry of Agriculture and Rural Development is the agency responsible for the project, which is due for completion around the end of 2016.

Vietnam aims to supply clean water to 85 percent of its population by 2010.