>> Waste found in numerous state-financed projects
The World Bank has approved a USD350-million loan for a project to increase public investment in Vietnam.
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| Inefficiency found at many state-invested projects |
The funding is part of a series of Vietnam’s Public Investment Reform programmes, which was designed to help the country avert some of the adverse impacts of the global economic crisis.
Of the sum, USD262.7 million will come from the World Bank’s International Development Association, while the rest will be provided by the World Bank’s resource window for middle income countries, the International Bank for Reconstruction and Development.
“Since the country is facing enormous demand for infrastructure development in the coming years, strengthening the project cycle will play a key role in ensuring a high quality of public investment.” said Victoria Kwakwa, the World Bank’s Country Director for Vietnam.
“We encourage the Government to continue the reform programme, especially in the state-owned sector, in order to achieve higher productivity of state invested capital,” she noted.
The overall goal of the programme is to support a series of policy measures that are expected to strengthen the management of public investment in Vietnam.
The programme also facilitates infrastructure development in Vietnam by developing a basic legal framework for PPP projects.
In December 2009, the World Bank approved its first credit package to Vietnam, totalling USD500 million.
