JICA to Fund Vietnam $184M for Institutional Reforms, Climate Change

The Japan International Cooperation Agency (JICA) has signed two loan agreements totaling JPY21 billion (nearly $184 million) to finance institutional reforms and help Vietnam cope with climate change. Yasuo Fujita, chief representative of JICA Vietnam and Tran Xuan Ha, Vietnamese deputy minister of Finance signed the agreements in Hanoi for the Economic Management Competitiveness Credit (EMCC) support program and the Support Program to Respond to Climate Change (SPRCC) project. The first project will get JPY11 billion, or $96.2 million, with an interest rate of 1.4% per annum for construction work. The time for repayment is 30 years, with a grace period of 10 years. The second project will receive JPY10 billion, or $87.5 million, with an annual interest rate of 0.3% for the construction work. The time for repayment is 40 years, with a 10-year grace period. To become an industrialized country, Vietnam needs to carry out economic restructuring and administrative reform. Besides, the country will have to raise income of rural people, improve environmental sanitation impacted by urbanization, and cushion the impact of climate change, experts said. In this context, ODA will support policy and institutional reforms through financial aid and policy dialogue in order to strengthen international competitiveness and cope with climate change, they noted. (english.thesaigontimes.vn Jan 17, Bao Dau Thau Jan 17, nhandan.com.vn Jan 16)