Hanoi, August 4, 2004 - The World Bank Board of Directors yesterday night approved a US$5 million emergency credit to support Vietnam's National Action Plan for the control of the avian influenza epidemic.

 The Vietnam Avian Influenza Emergency Recovery project aims at a threefold target: (a) to strengthen disease surveillance and diagnostic capacity in the control of highly pathogenic avian influenza (HPAI); (b) to strengthen the poultry sector infrastructure to better cope with serious disease outbreaks; and (c) to safeguard human health by improving public awareness and information.

 The recent avian influenza epidemic has been a financial disaster for Vietnam? commercial poultry industry and has also affected the livelihood of millions of small-holder poultry-keepers.  Of a total of around 12 million farming households it is estimated that over 70% keep poultry, constituting an especially important source of household cash income, especially for women.

 "The recent epidemic clearly revealed the inadequacy of veterinary and
 extension services to cope with an animal health epidemic of this nature," said Martin Rama, Acting Country Director of the World Bank in Vietnam. "The project will provide much needed technical advice to the Government on the strategy it should follow to recover from the present crisis and for the future control of avian influenza epidemics."

 The main benefits to the national economy would be the restoration of productive assets and economic activities, mainly in rural areas, through: (a) the rehabilitation of the poultry sub-sector which was severely affected by the epidemic; (b) the strengthening of Vietnam?s animal disease surveillance system, both public and private, and diagnostic capacity, to identify at the earliest time new HPAI outbreaks; and (c) the provision of information on infectious animal disease outbreaks and advice on animal health and safety to extension staff, poultry producers and the general public.

 The project will benefit poultry farmers and traders who lost their poultry or
 ducks as the result of the avian influenza epidemic.  The project will also help protect other farmers against such losses in future.

 "The project supports the first phase of a longer-term program aimed at
 restructuring Vietnam poultry sub-sector and strengthening the veterinary
 services system to deal with other potentially destructive infectious disease
 outbreaks.  It will therefore serve as a pioneering effort to evaluate the
 methodologies most suitable for emergency preparedness and longer-term
 intervention,"  noted Rama.

 The total cost of the project is estimated to be US$6.20 million, of which the World Bank contribute US$5 million of IDA emergency credit, FAO would finance US$0.55 million, mainly for technical assistance and training, and the Government put forward US$0.65.

 The International Development Association (IDA) Credit is being extended at standard IDA terms, with a 40-year maturity and a 10-year grace period.