(VNF) - Mr Jean-Noël Poirier, Ambassador of France in Vietnam, Mr Truong Chi Trung, Vice Minister of Finance of Vietnam and Mr Rémi Genevey, Director of the Agence Française de Développement (AFD) in Vietnam, on May 19th sign the credit agreement for the fifth tranche of the "Support program to respond to climate change" (SP-RCC) for a EUR20 million loan.

This program supports the reform agenda of the Government of Vietnam in various sectors for an effective response to climate change and for the promotion of a low carbon development. The SPRCC budget support is disbursed based on the results of the policy dialogue and the reforms adopted.

Vietnam, one of the most affected countries by the consequences of climate change, is particularly concerned by these issues. Vietnam is also willing to transform its growth model into greener growth.

In 2009, the AFD and JICA (Japanese International Cooperation Agency) have initiated jointly the SP-RCC program by proposing to the Vietnamese authorities a budget support to assist actions related to the fight against climate change. Several international donors have since joined the program like the World Bank.

This fifth tranche for SPRCC brings the total contribution of AFD to SPRCC program up to EUR100 million.

In addition to the budget support, the AFD has also financed technical assistances to the Government of Vietnam for the definition of energy efficiency targets in the steel sector, the preparation of an action plan of energy efficiency for buildings in Danang city, and the organization of thematic seminars for French-Vietnamese experience sharing on public expenditures tracking on climate and renewable energies.

Response to Climate Change is one of the strategic orientations of AFD’s activities in Vietnam. Over the period of 2006-2014, AFD provided EUR471 million to Vietnam through 16 development projects with climate co-benefits either in mitigation (public transport, energy) and adaptation (flood’s control, irrigation, and agriculture).

AFD, main operator of France official development assistance, is actively involved in Vietnam since 1994. The cumulated ODA financing of AFD group to Vietnam figure up to more than EUR1.6 billion, for 79 projects./.

( VNF )