Thu Dau Mot Expands Water Capacity with ADB Loan
Deal News | Aug 04, 2025 | Asian Development Bank
The Asian Development Bank (ADB) and Thu Dau Mot Water Joint Stock Company (TDM) have signed a $6 million loan agreement to enhance the Bau Bang water treatment plant's capacity from 30,000 to 80,000 cubic meters daily. This expansion, co-financed by the Japan International Cooperation Agency (JICA), aims to meet the rising water demands in the northern industrial and residential sectors of Binh Duong and Thu Dau Mot in Viet Nam. ADB emphasizes that this project is critical for local businesses and prospective investors in the Southern Key Economic Zone, thus promoting economic growth and foreign direct investment in the region. The initiative is in line with the Vietnamese government's equitization reforms to make state-owned enterprises more efficient. TDM will also benefit from technical assistance and capacity-building programs supported by ADB and Korea Water Resource Corporation. TDM, one of Viet Nam's most efficient water utilities, is publicly listed on the Ho Chi Minh Stock Exchange.
Sectors
- Infrastructure
- Utilities
- Economic Development
Geography
- Viet Nam – The project is located in Viet Nam, specifically in the Binh Duong and Thu Dau Mot areas, and involves local companies and government initiatives.
- Asia and the Pacific – ADB's involvement signifies a broader geographical impact across Asia and the Pacific region, where it supports sustainable growth.
Industry
- Infrastructure – The project involves the expansion of a water treatment plant, a critical infrastructure asset in Viet Nam.
- Utilities – TDM is a major water utility company providing essential services, thus relevant to the utilities sector.
- Economic Development – This investment supports regional economic growth and aligns with government reforms aimed at enhancing private sector involvement.
Financials
- $6 million – The loan amount provided by ADB for the Bau Bang water treatment plant expansion.
- Equivalent $6 million – Co-financing amount provided by JICA for the project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank (ADB) | Lender | PE | ADB is providing a $6 million loan for the water plant expansion project. |
| Thu Dau Mot Water Joint Stock Company (TDM) | Target Company | Company | TDM is the recipient of the loan, responsible for the Bau Bang water treatment plant. |
| Japan International Cooperation Agency (JICA) | Co-financer | Company | JICA is co-financing the project, providing an equivalent amount to ADB's loan. |
| Tran The Hung | General Director of TDM | Person | General Director of TDM, overseeing the company's participation in the project. |
| Korea Water Resource Corporation | Partner in knowledge and technical assistance | Other Company | Partnering with ADB to provide capacity-building and technical support to TDM. |
| Shantanu Chakraborty | Country Director for Viet Nam at ADB | Person | He comments on the significance of the project for economic growth and investment. |