Press Release

RURAL DEVELOPMENT SCHEME IN VIETNAM RECEIVES OPEC FUND SUPPORT WITH US$10 MILLION LOAN

08/2005 January 12, 2005, Vienna, Austria

The OPEC Fund for International Development today signed a US$10 million loan agreement with the Socialist Republic of Vietnam to cofinance a multi-faceted rural development scheme in the Quang Nam Province. The project falls within the framework of a government strategy to improve rural infrastructure in order to boost agricultural production, raise household incomes, reduce living costs and enhance access to markets, jobs and other social services.

Quang Nam Province is home to around 900,000 people and one of the most impoverished areas in Vietnam. Many villages lack basic infrastructure such as schools and health clinics, along with access to clean drinking water and electrical power.

To address some of these issues, the project will carry out works across a wide range of sectors. Activities will include, among others, the construction of rural roads, bridges and primary schools, as well as the establishment of irrigation schemes and wells to help raise agricultural productivity. Measures will also be taken to expand the province's local power grid system and to curb water shortages through the building of dams, canals and pumping stations. In addition, the project will re-locate around 4,400 households endangered by landslides and carry out capacity-building activities among local authorities.

The OPEC Fund has previously approved 11 loans for Vietnam . Of these, two financed commodity imports programs and nine others went towards projects in the agriculture, education, energy, multi-sectoral, national development banks and health sectors. Fund grants also were extended to assist typhoon victims and to help finance a rural water supply program.

Today's agreement was signed in Vienna by H.E. Mr. Nguyen Truong Giang, Ambassador of the Socialist Republic of Vietnam to Austria and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.