ADB to provide sustainable water services in Vietnam

The ADB will provide loan financing to expand a water treatment plant in Binh Duong

The expansion will increase production capacity, install additional water intake pumps, and build raw water transmission pipes from the Dong Nai River intake facility.

The upgrade will help to meet the rising water demand of residential and industrial customers in Ben Cat town, Tan Uyen town, Binh Duong new city, and Thu Dau Mot city of Binh Duong province, where industrial zones provide jobs for nearly 1.3 million locals and more than 500,000 foreigners. The financing package also includes a parallel co-financing of $8 million from the Japan International Cooperation Agency.

A further $500,000 in technical assistance will be provided by the e-Asia and Knowledge Partnership Fund, established in 2006 by the Republic of Korea to help the ADB’s developing members meet their development goals through the creation and sharing of experience, information, and knowledge.

The technical assistance will provide capacity building on financial management and climate-resilient business and operational planning. It will also enhance the legal foundation of the business and operational framework between BIWASE and Binh Duong Provincial People’s Committee. The ADB has supported Vietnam’s water sector since 1993, through seven sovereign loans including the Water Sector Investment Program.

"This financing will deliver sustainable and efficient water supplies in this fast-growing province, spurring its future growth and contribution to the broader economy,” said Infrastructure Finance Division director for Southeast Asia, East Asia, and the Pacific at ADB's Private Sector Operations Department, Jackie B. Surtani.

“It is a strong signal to other international financiers that private sector commercial financing of Vietnam’s water sector is feasible and attractive. We are also very happy to work with the Japan International Cooperation Agency on this transaction to support water sector development in Vietnam.”

“We highly value our long-term relationship with the ADB, which goes back to 2002 when we participated in the third provincial towns water supply and sanitation project,” said BIWASE’s chairman of the board of directors Nguyen Van Thien. “We appreciate the continued support from ADB in providing a one-stop solution to enable BIWASE to transition from sovereign financing to standalone private sector financing as it continues on its growth path. We look forward to ADB’s continued engagement with the water sector in Vietnam and hope to work with the ADB again in the future.”

The technical assistance will provide capacity building on financial management and climate-resilient business and operational planning. It will also enhance the legal foundation of the business and operational framework between BIWASE and Binh Duong Provincial People’s Committee. The ADB has supported Vietnam’s water sector since 1993, through seven sovereign loans including the Water Sector Investment Program.

BIWASE was founded in 1975 as a government-owned entity. It became a joint-stock company in 2016 and was listed on the Ho Chi Minh City Stock Exchange in 2017. Currently, BIWASE has a total daily water production capacity of 311,300 cubic metres, and its services cover 78 per cent of Binh Duong province’s population. BIWASE is also the province’s sole provider of municipal solid-waste treatment and municipal wastewater and sanitation services.