Press Release

OPEC Fund lends US$8 million to Vietnam for transportation project

96/2005 September 8, Vienna, Austria
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The OPEC Fund for International Development today signed a US$8 million loan agreement with the Socialist Republic of Vietnam to help with the construction of a new road in the remote northern province of Cao Bang. The aim of the project is to improve transport conditions in the area with a view to boosting economic activity and raising incomes and living standards.

Like much of rural Vietnam, roads are the most important means of transportation in Cao Bang province, which has a population of around half a million. The majority of people derive a living from agriculture and forestry, but isolation and limited access to markets constrain earning potential. While government has been implementing a major road improvement program, with the goal of providing all communities, countrywide, with better transport links, significant gaps still exist.

The planned road will link the districts of Ha Quang, Thong Nong and Bao Lac and has a length of approximately 67.5 km. In its existing state, the road is too narrow to carry motorized vehicles.

Under the project, the new road will have an all-weather surface and a width of 3.5 meters with 1.25-meter shoulders on both sides. Culverts will be constructed to provide drainage and prevent flooding of the pavement, and a total of 10 bridges will be built. The new road is expected to bring with it a range of major social benefits, including improved access to health services and schools and greater opportunities for employment. It will also promote agricultural expansion and increased trade.

The OPEC Fund has extended 12 earlier loans to Vietnam. Two of these supported commodity imports programs, while the remainder co-financed projects in the agricultural, educational, health and energy sectors.

Today's agreement was signed in Vienna by H.E. Mr. Nguyên Truòng 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.