The New Nation - Internet Edition

AFP, Manila

France and the Asian Development Bank will provide 143.3 million dollars in loans and grants to help Vietnam rebuild rural roads, irrigation systems and farm infrastructure, the bank said on Thursday.

Hanoi will get a 90 million dollar soft loan from the Philippines-based ADB and a 52 million dollar loan and 1.3 million dollar grant from France's Agence Francaise de Developpement, a bank statement said.

Vietnam's critical rural infrastructure had deteriorated over decades due to war, natural disasters and budget constraints, it said.

Included are rural roads, irrigation drainage and flood control systems, rural markets, domestic water supply schemes, and special coastal works such as sand dune stabilization, salinity prevention and mangrove rehabilitation.

The project covers 13 provinces in Vietnam's impoverished Central Region.

"Poverty in Vietnam is a rural phenomenon, focused to a large extent on the more isolated central and northern regions of the country. It especially affects ethnic minorities," said ADB natural resources economist Ahsan Tayyab.

Improvements in rural infrastructure helped Vietnam's agricultural sector achieve significant growth in the past decade, the bank said.

Detailed loan terms were not disclosed.