ADB and JICA provide $12 million loan for water plant expansion

ADB and JICA provide $12 million loan for water plant expansion

On August 1, the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) signed a loan agreement worth $12 million with Thu Dau Mot Water JSC for expansion of Bau Bang Water Treatment Plant.

The objective is to ​contribute to the improvement of the urban sanitation environment and sustainable economic growth in Bau Bang hamlet of Ho Chi Minh City by ​expanding water treatment plant facilities​.

According to the plan, the plant will be expanded by an additional 320,000 cubic metres per day, bringing its total capacity to 350,000 cu.m daily. Phase 1, with a capacity of 100,000 cu.m per day, is scheduled for implementation before the end of 2026.

This project will serve as a cornerstone of Thu Dau Mot Water’s infrastructure development strategy for the 2025–2030 period.

The initiative is estimated to have total capital of $23 million. The ADB and JICA have committed to providing a loan of around $12 million, accounting for 52 per cent of the total.

Shantanu Chakraborty, Vietnam country director for the ADB said, “The expansion of the plant is vital to ensuring a reliable and clean water supply for residents, existing businesses, and prospective investors seeking to establish a presence in Vietnam’s southern key economic region. It will support economic growth, job creation, and the attraction of foreign direct investment in the country.”

The venture aligns with the government's state-owned enterprise equitisation reforms, which aims to transform them into private sector-led utilities. This transition is expected to improve operational efficiency and reduce public and publicly guaranteed debt in Vietnam’s infrastructure sector.

Thu Dau Mot Water will also receive knowledge and technical support through ADB's Water Organisations Partnership for Resilience. The programme will deliver capacity-building training sessions for the company’s staff in key areas such as water ecology, smart energy management, and carbon neutrality, in collaboration with Korea Water Resource Corporation.

Nguyen Van Tri, chairman of the board at Thu Dau Mot Water said, "We are committed to delivering high-quality water services to our customers and contributing to sustainable development in Binh Duong and Thu Dau Mot. Our partnership with the ADB will enable us to access long-term financing, strengthen our capacity to manage environmental and social impacts, and enhance our climate resilience and sustainability.”

VIR