(VNF) - The Government of Vietnam and the Japan International Cooperation Agency have inked Japanese ODA loan agreements up to a total of JPY166.124 billion for assistance for three projects.

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

Support for economic infrastructure to strengthen international competitiveness

The Ho Chi Minh city urban railway project (Ben Thanh - Suoi Tien section Line 1) will address the increasing transportation demand in the city by constructing a mass rapid transit system, thereby contributing to regional economic development and mitigating traffic congestion and air pollution.

This project comprises multiple funding rounds. For the first loan, JPY20.887 billion was allocated in March 2007, and for the second loan, JPY44.302 billion was allocated in March 2012.

The funds from the current loan will be to public works, the procurement of equipment and materials, and consulting services, all of which are required for railway construction.

Special Term for Economic Partnership applies to this project, and Japanese technology will be utilized.

Management Authority for Urban Railways under the Ho Chi Minh city People’s Committee is the executing agency. The project is planed to complete in November 2020 when the facilities are put into service.

Thai Binh thermal power plant and transmission lines construction project

This project will construct a 600 MW coal-fired thermal power plant that uses domestic coal as fuel, and 220-KV transmission lines and substations for connecting the power station and the power grid in northern Vietnam to meet the power demand in the region. This will contribute to a stable power supply in the country, as well as promoting economic growth and strengthening international competitiveness.

This is the fourth loan for this project. Previously, Japan provided JPY20.737 billion (in November 2009), JPY36.392 billion (in January 2015) and JPY9.873 billion (in July 2015).

The loan funds will be used for construction, for material and equipment procurement to construct the power station and transmission lines and substations, and for consulting services such as bidding assistance and construction supervision. The loan funds will also be used to construct shared facilities with the adjacent power stations.

Executing agencies are Power Plant Portion under Vietnam Electricity, Transmission Line and Substation Portion under the National Power Transmission Corporation. The project is expected to complete in April 2018 when the facilities are put into service.

Second Ho Chi Minh city water environment improvement project

The objective of this project is to lessen the damage caused by flooding and raise the capacity for treating polluted water through the improvement of the sewerage and drainage system in the Southern hub city. These measures will contribute to an improved level of sanitation and better urban living conditions.

This project comprises multiple funding rounds. For the first loan, JPY1.557 billion was allocated in March 2006, and for the second loan, JPY13.169 billion was allocated in March 2008.

This loan will be allocated to the improvement of the sewerage and drainage system, including canal repairs, repairs to existing sewage piping, new combined sewerage piping construction, and sewerage plant expansion, as well as to consulting services.

Ho Chi Minh city People’s Committee is the executing agency.

The project is designed to complete in October 2019 when the facilities are put into service./.

( VNF )