VietNamNet Bridge – Japan will provide Vietnam with 166.124 billion yen (US$1.5 billion) in official development assistance (ODA) loans to support the latter’s implemention of three major projects.

Illustrative image -- File photo

The Japan International Cooperation Agency (JICA) and the Vietnamese Government last week signed agreements on the ODA loans.

The three projects are the Ben Thanh-Suoi Tien metro line project (line No. 1), Thai Binh thermal power plant and transmission lines, and phase two of HCMC’s water environment improvement project.

The Japanese loans are to support Vietnam to build economic infrastructure to strengthen its competitiveness and improve the environment to overcome its vulnerabilities.

The metro line project aims to address the increasing transportation demand in HCMC, contribute to economic development and mitigate traffic congestion and air pollution. It comprises multiple funding rounds, with the first loan, 20.887 billion yen, allocated in March 2007, and the second, 44.302 billion yen, in March 2012.

The funds from the third loan will be used for public works, procurement of equipment and materials, and consulting services, all of which are required for railway construction. The project is set for completion in November 2020.

Meanwhile, the thermal power project will construct a coal-fueled 600MW plant and 220kV transmission lines and substations in northern Vietnam. The new ODA loan is the fourth for the project after 20.737 billion yen was provided under an agreement signed in November 2009, 36.392 billion yen in January 2015 and 9.873 billion yen in July 2015.

This power project is expected to be put into operation in April 2018.

The water environment improvement project in HCMC, which will be completed in October 2019, is aimed at lessening damage caused by flooding and raising the city’s wastewater treatment capacity through the improvement of the sewerage and drainage system, which will contribute to an improved level of sanitation and better urban living conditions.

The first and second loans of this environmental project, which are 1.557 billion yen and 13.169 billion respectively, were allocated in March 2006 and two years later.

SGT