Japanese ODA Loan to the Socialist Republic of Viet Nam

October 26, 2009
Japanese

The Government of Japan has decided to provide a Japanese ODA loan of up to 64,891 million yen in total to the Government of the Socialist Republic of Viet Nam with a view to promoting the country’s efforts toward economic and social development and market economy. Notes to this effect were exchanged in Hanoi on October 26 (Mon) between H.E. Mr. Mitsuo Sakaba, Japanese Ambassador to Vietnam, and H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment of the Socialist Republic of Viet Nam.

Projects and maximum amount of the loans

(1) National Highway No. 1 Bypass Road Construction Project (II) 4,141 million yen

(2) Thai Binh Thermal Power Plant and Transmission Line Construction Project (I) 20,737 million yen

(3) Small-Scale Pro Poor Infrastructure Development Project (III) 17,952 million yen

(4) Energy Efficiency and Renewable Energy Promotion Project 4,682 million yen

(5) Small and Medium-sized Enterprise Finance Project (III) 17,379 million yen

Total 64,891 million yen

Outline of the Projects

(1) National Highway No. 1 Bypass Road Construction Project (II)

This project is to provide access roads from the portion of National Highway No. 1 near the city of Can Tho, located in the southern Viet Nam, to the Can Tho bridge (under construction) that crosses a tributary of the Mekong River.

(2) Thai Binh Thermal Power Plant and Transmission Line Construction Project (I)

This project is for the construction of a 600MW thermal power plant in Thai Binh Province, located in northern Viet Nam, and transmission lines, etc. in the surrounding regions.

(3) Small-Scale Pro Poor Infrastructure Development Project (III)

This project is for the construction of small-scale infrastructure (road, electricity, water supply, irrigation, etc.) in poor regions of Viet Nam.

(4) Energy Efficiency and Renewable Energy Promotion Project

This project is to supply the medium to long term funds necessary, through two-step loans provided by the Viet Nam Development Bank, for the promotion of energy conservation and the utilization of renewable energy to enterprises in Viet Nam.

(5) Small and Medium-sized Enterprise Finance Project (III)

This project is to supply medium to long term funds to small and medium sized enterprises through two-step loans provided by the State Bank of Viet Nam.

Terms and conditions of the loan

Projects: (1), (2), (3) excluding water supply, and (5)
        (a) Interest rate: 1.2 % per annum (general terms)
                        (0.01% per annum for consulting services)
        (b) Repayment period: 30 years (including a ten-year grace period)
        (c) Procurement method: general untied

Project: (3) water supply
        (a) Interest rate: 0.55% per annum (preferential terms)
        (b) Repayment period: 40 years (including a ten-year grace period)
        (c) Procurement method: general untied

Project: (4)
        (a) Interest rate: 0.25% per annum (climate change terms)
                        (0.01% per annum for consulting services)
        (b) Repayment period: 40 years (including a ten-year grace period)
        (c) Procurement method: general untied

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