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    Southeast Asia
     May 17, 2005
ADB issues grant for Vietnamese development

HANOI - The Asian Development Bank (ADB) and the Vietnamese government have signed an agreement for a US$1 million grant for an innovative urban improvement project to help improve the quality of life in poor communities in the country's central region.

The grant comes out of the ADB's Japan Fund for Poverty Reduction (JFPR), which is financed by the Japanese government.

Bradford Philips, country director of ADB's Vietnam Resident Mission, signed the grant on behalf of the ADB at a ceremony on Thursday morning at the State Bank of Vietnam.

Phung Khac Ke, deputy governor of the State Bank of Vietnam, and a representative from the Ministry of Construction signed the grant on behalf of the Vietnamese government.

First secretary and head of the economic section of the Embassy of Japan, Yasukata Fukahori, was also present at the ceremony.

The project will address scarce resources, poor health and lack of opportunities to break the "cycle of poverty" in Vietnam. The project will use community-based approaches to address annual flooding, poor drainage, unclean environments, skills training and income-generating strategies.

The town of Tam Ky in Quang Nam province will serve as the pilot area, as it has high poverty and suffers frequent flooding.

"The project will help expand the benefits of urban improvements to the poor through a participatory approach, with external assistance serving as a catalyst for community development," Philips said at the ceremony.

"Good health, hygiene, and a sanitary environment, coupled with adequate skills, will result in a productive labor force and help break the cycle of poverty," he said.

A majority of the population of the central region, particularly the poor, do not have access to hygienic facilities and infrastructure, despite efforts by government agencies and donor programs to improve these areas.

The grant will finance small projects, such as building tertiary drainage, improving alleyways and footpaths, connecting water supplies to households, and creating quality sanitation facilities. It will also help with the larger project of fighting floods, environmental hazards and disease.

Transfer stations, small equipment and other supplies for a community-based solid waste management project, which will benefit some 3,700 households, will also be provided.

The grant will allow for skills training in construction and carpentry, waste collection and recycling, sanitation, and other environment-related work.

This will provide jobs to the poorest members of the community, who, by establishing a fee-based collection system, will collect and recycle or dispose of solid waste.

"The high level of community involvement in the planning and implementation of the project will increase community ownership of these undertakings and improve the prospects for sustainability," said Januar Hakim, ADB urban development specialist.

The Ministry of Construction will implement the three-year project. The Vietnamese government and beneficiaries will contribute $200,000 to the project.

The JFPR was set up in 2000 with an initial contribution of $90 million. The fund now stands at more than $344 million, $153 million of which is committed.

The ADB is dedicated to reducing poverty in the Asia-Pacific region through sustainable economic growth, social development, and good governance.

Established in 1966, it is owned by 63 members, 45 of which are from this region.

(Asia Pulse/VNA)

 

 
 

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