(VNF) - The Vietnamese Government and the Japan International Cooperation Agency (JICA) on March 31st singed ODA loan agreements to provide loans of up to a total of JPY95.167 billion for four projects.

These loans will provide support for building the economic infrastructure essential to strengthening Vietnam’s competitiveness, and for promoting environmental improvements to overcome the country’s vulnerabilities.

Support for economic infrastructure to strengthen international competitiveness

The North-South expressway construction project (Da Nang - Quang Ngai section) will enhance the efficiency of transportation and goods distribution near Da Nang, which is a center of industry and goods distribution for central Vietnam, and thereby meet the increase in transportation volume.

The financial source is used for civil works, material and equipment procurement and consulting services required for the development of the high standard expressway.

The Vietnam Expressway Corporation is the executing agency.

The Lach Huyen port infrastructure construction project, which covers one project for the port and one for roads and bridges, will construct an international deep-water mega-port and related facilities in Hai Phong on the northern coast of the country, making it possible to meet the rising volume of cargo and to accommodate the larger size of vessels used in maritime transportation.

JICA has provided ODA loans for the phase I (signed in November 2011 for JPY20,995 million) and phase II (signed in March 2013 for JPY37,958 million) of the project for ports, roads and bridges. This ODA loan is for phase III of the project.

The loan is used for engineering works, material and equipment procurement and consulting services required for the development of the port and the surrounding basic infrastructure (including access roads and bridges).

The Ministry of Transport is the executing agency.

Support to fight climate change toward overcoming vulnerabilities

The Japanese side will provide support for alleviating and adapting to climate change and for solving cross-field issues through fiscal assistance and policy dialogue in Vietnam, one of the world’s most susceptible countries to the effects of climate change.

JICA’s policy is to dynamically implement projects that address development issues in Vietnam while coordinating JICA’s various types of assistance, which include Japanese ODA loans, technical cooperation and grant aid.

Support program to respond to climate change

This project will provide financial support and policy dialogue support for climate change countermeasures to mitigate the impacts of climate change by curbing greenhouse gas absorption and emissions; strengthen the capacity to adapt to the adverse impacts of climate change, and address cross-sectoral challenges relating to climate change. While alleviating climate change, this will contribute to sustainable economic development by lowering the risk of natural disasters in the country that accompany climate change.

Earlier, this project has been provided with ODA loans with JPY10 billion in June 2010 for the first phase, JPY10 billion in November 2011 for the second phase, JPY15 billion in March 2013 for the third phase, JPY10 billion in March 2014 for the fourth phase and JPY15 billion in March 2015 for the fifth phase.

The sixth phase has been approved based on an evaluation of the accomplishments made between January and December 2014 in implementing policy actions for climate change mitigation, adaptation and cross-sectoral fields, for backing further climate change countermeasures by the Vietnamese Government.

The loan funds will be used for procuring general commodities for import.

The Ministry of Natural Resources and Environment is the executing agency./.

( VNF )