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Vietnam Today

OFID lends $21.8mn for Vinh Phuc bridge

Released at: 16:48, 23/05/2017

OFID lends $21.8mn for Vinh Phuc bridge

Illustrative image (Source: vinhphucland.com)

Loan to go towards building Dam Van Bridge in northern province.

by Hai Van

A signing ceremony was held in Hanoi on May 22 for a loan of $21.8 million from the OPEC Fund for International Development (OFID) to Vietnam for the construction of the Dam Vac Bridge in northern Vinh Phuc province.

Total investment capital for the bridge project is $25.5 million, with reciprocal capital of some $3.6 million.

The loan term is 20 years, including a five-year grace period, with an interest rate of 2 per cent per annum and a service charge of 1 per cent of the principal.

The bridge will be built over the Dam Van River from 2017 to 2021 and upon completion will connect the north and the south of the provincial capital of Vinh Yen city.

Vinh Phuc province has borrowed from OFID based on the government's policy on strengthening public debt management to ensure sustainable national finances, according to Minister of Finance Dinh Tien Dung. He also proposed the OFID assist other Vietnamese projects.

Vietnam and OFID will lend to projects and programs that belong to the medium-term public investment program 2016-2020, which has been approved by the government in line with its development strategy for 2016-2020.

OFID is the development finance institution established by the member states of OPEC in 1976 as a channel of aid to developing countries.

It works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world. It does this by providing financing to build essential infrastructure, strengthen social services delivery, and promote productivity, competitiveness, and trade.

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