Credit agreement signed in Hanoi yesterday.
A credit agreement for the fifth tranche of the Support Program to Respond to Climate Change with a loan of over $22.2 million was signed yesterday by Deputy Minister of Finance Truong Chi Trung, H.E. Jean Noël Poirier, Ambassador of France in Vietnam, and Mr. Rémi Genevey, Director of the French Development Agency (AFD).
The program supports the reform agenda of the Vietnamese Government in various sectors for an effective response to climate change and for the promotion of low carbon development. The funds will be disbursed based on the results of policy dialogue and reforms adopted.
Vietnam is likely to be one of the countries most affected by the consequences of climate change, with it to transform to a greener growth model with the help of the loan. The program has also supported many reforms in Vietnam, which the country may present to the Paris Climate Conference in December.
AFD has also provided technical assistance to the government on energy efficiency targets for buildings in central Da Nang city and the organization of seminars between Vietnam and France on supervising public expenditure on climate change activities and renewable energies.
From 2006 to 2014 AFD provided $524.6 million to Vietnam in 16 development projects in mitigation (public transport and energy as well as in adapting to climate change, regarding flood control, irrigation and agriculture. Since 1994 cumulative AFD funding to Vietnam stands at $1.7 billion in 79 projects.