Sustainable Rural Infrastructure Development Project in Northern Mountain Provinces (Loan-2683)

The project will rehabilitate and upgrade deteriorated but critical rural infrastructure in 15 mountainous provinces of northern Viet Nam. These provinces have a combined population of 12.2 million people and are among the poorest in the country. Overall poverty rates average about 27%, but are considerably higher in more isolated areas, where poverty levels may be 50%-60%. One of the main reasons for these high levels of poverty is limited access to productive assets and infrastructure (such as irrigation water systems), and physical isolation. The project will focus on improving small- to medium-scale irrigation and/or drainage systems, rural roads, and district and commune markets. The project will include 40-45 subprojects. Rehabilitation and upgrading of rural infrastructure is expected to have a positive impact on the lives and livelihoods of the population in the project area, providing easier access to inputs (including irrigation water), markets, health services, higher levels of education, and employment opportunities, while reducing production and marketing costs.