Funding to go towards four major projects in Vietnam.
The Japan International Cooperation Agency (JICA) has signed Japanese overseas development assistance (ODA) loan agreements totaling $848.5 million with the Vietnamese Government for four projects.
The first is the North-South Expressway Construction Project (Da Nang - Quang Ngai section) worth $267.3 million. Annual interest rates for the project and consulting services are 1.4 per cent and 0.01 per cent, respectively, with a repayment period of 30 years and a grace period of ten years.
The second, the Lach Huyen Port Infrastructure Construction Project, is worth $287.7 million. Annual interest rates for the project and consulting services are 0.1 per cent and 0.01 per cent, respectively, with a repayment period of 40 years and a grace period of ten years.
The third loan is also for Lach Huyen Port Infrastructure Construction Project but for the building of roads and bridges and worth $203.9 million. Details are the same as for the major project.
The final loan is for the Support Program to Respond to Climate Change, worth $89.1 million. The annual interest rate for the project is 0.3 per cent while consulting services are interest free. The repayment period and grace period are 40 years and ten years, respectively.
In order to maintain sustainable economic growth while progressing towards its goal of industrialization by 2020, Vietnam must reform its economic structure and governance, including improvements to its financial system and infrastructure to improve the investment environment.
The Japanese ODA 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.