HANOI -(Dow Jones)- The Asian Development Bank said Friday it has signed an agreement with the government of Vietnam for a $72 million loan to develop infrastructure in the country’s northern province of Thanh Hoa.
The loan will be used to fund a $118-million project to develop and upgrade urban infrastructure and services in the province, 150 kilometers south of Hanoi, the bank said.
The 32-year loan bears an annual interest of 1% for the first eight years and 1.5% for the rest of the term.
The bank has also agreed to provide a grant of $2 million to the province to improve its water-supply system.
ADB said South Korea’s Eximbank is also providing a $32.7-million loan to Vietnam build an 11-kilometer road in the province.
-By Vu Trong Khanh, Dow Jones Newswires; 844 35123042; trong-khanh.vu@ dowjones.com