Hanoi wins WB credit for rural road revamp

Hanoi wins WB credit for rural road revamp

HANOI (Reuter): The World Bank said yesterday that it would lend Vietnam $55 million for a project to revamp rural access roads in 15 of the country's poorest provinces.

The International Development Association credit will cover most of the project's $60.89 million cost and the government of Vietnam will provide the balance, the Bank said in a statement.

"The project will boost poverty alleviation and rural development..." it said. "By improving road systems, rural areas will gain better access to agricultural technology, efficient marketing opportunities and corresponding economic activities."

Vietnam's rural areas, where some 57 percent of the people live below the poverty line, have lagged behind urban areas in growth and development during the past decade of reform.

The Bank said a lack of rural infrastructure and inadequate access to markets have contributed to persistent poverty and malnutrition. Most rural roads are in poor condition, inaccessible during the wet season and an impediment to trade and growth.

The Vietnamese government's rural development strategy has begun to target investment in economic infrastructure, particularly in roads and transport systems.