Minister of Finance Dinh Tien Dung (R) and Director-General of the OPEC Fund for International Development (OFID) Abdulhamid Alkhalifa at the signing ceremony. (Photo: VGP)

Minister of Finance Dinh Tien Dung and Director-General of the OPEC Fund for International Development (OFID) Abdulhamid Alkhalifa signed the loan agreement worth US$45 million in Hanoi to fund a project on improving the transport infrastructure of Da Nang.

The project has a total investment capital of US$61.37 including US$45 million loan from the OFID and US$16.37 million counterpart investment from the local budget of Da Nang. The city government is in charge of the project.

The project is scheduled for completion in late 2022 which is expected to improve the sustainable development of transport condition in the local and promote socio-economic development of Da Nang.

Vice Chairman of Da Nang city People’s Committee Dang Viet Dung said that the loan is an important capital source of Da Nang to develop the transport in the West of the city in accordance with the general planning of the city.

The project will complete the construction of approximately 14.3km of the ring road 2 in the West, with a width of about 44-48m and associated bridges on the route with 38.3m width. The project will also build other technical infrastructure including drainage systems, culverts and lighting systems in addition to relocating existing works, among others.

The OFID has so far provided Vietnam with loans worth over US$238 million in total to fund 20 development projects.

It will also develop some 1.2 kilometers of an asphalted road linking Co Co Bridge with the intersection of Tran Dai Nghia and Vo Chi Cong streets, along with other technical infrastructure facilities.

PM speaks highly of OFID-funded projects in Vietnam

During his meeting with the OFID chief, Abdulhamid Alkhalifa, a day earlier, Prime Minister Nguyen Xuan Phuc stated that OFID-funded projects have significantly improved the living standards of Vietnamese residents, especially in rural areas.

Prime Minister Nguyen Xuan Phuc receives OFID Director-General Abdulhamid Alkhalifa in Hanoi on August 27. (Photo: VNA)

The Government leader said Vietnam and the OFID have maintained a strong relationship over the last four decades through 20 projects and programs in the fields of transport, irrigation, poverty reduction, healthcare, education and urban development across the country.

Alkhalifa stated that this was the right time for the two sides to raise their cooperation efforts to a new level, adding that the OFID stands ready to support Vietnam’s development and is a good partner to the country.

Vietnam has transformed itself into a middle-income country but is still in need of capital for development, especially for infrastructure, according to the prime minister.

As interest rates have been falling in the global capital market, PM Phuc expected the OFID to continue providing technical assistance through nonrefundable aid and to help Vietnam access the fund’s loans with preferential rates.

Vietnam will cooperate with the OFID in drafting projects and programs that meet the OFID’s criteria and align with Vietnam’s socioeconomic development strategy, Phuc continued.

Alkhalifa said the prime minister’s comments would help the OFID set up its cooperation strategy with Vietnam in the future, and he anticipated that the fund would become a credible partner for the country in terms of development.

The guest also expressed hope that the Vietnamese Government, ministries and agencies would back the fund’s efforts to cooperate with and assist the country’s private sector and small- and medium-sized enterprises.

Thien Tu