The State Bank of Viet Nam and the World Bank yesterday signed a credit agreement worth US$250 million to improve the management and maintenance of the nation's roads.
The funding for the Viet Nam Road Asset Management Project will come from the International Development Association, the World Bank Group's funding source for low income country.
The Australian Government will also provide AUD1.7 million ($1.5 million) for this project through a trust fund managed by the World Bank.
Apart from the Road Asset Management System, the project will help advance the reform agenda through the increased use of performance-based contracts and by supporting the Road Maintenance Fund.
It is anticipated that successful implementation of the VRAMP will lead to a more effective road preservation strategy, improved road asset management, and the efficient programming of road network operations.
Officials noted that the project will directly benefit road users in 13 provinces in northern Viet Nam.
Improvement and preventive maintenance will result in reduced vehicle operating costs, a reduction in travel times, and fewer road accidents due to improved road safety features.
The funding will also improve critical links in the national highway network and increase the efficiency of public expenditures for road management through targeting of funding to sections of the highway network that are most in need of assistance./.