Japanese ODA Loan to the Socialist Republic of Viet Nam

March 31, 2009
Japanese

The Government of Japan has decided to provide a Japanese ODA loan of up to 83,201 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 March 31 (Tue) 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) Hanoi City Urban Railway Construction Project (Nam Thang Long – Tran Hung Dao (Line 2)) (I) 14,688 million yen

(2) Hai Phong City Environmental Improvement Project (II) 21,306 million yen

(3) Second Hanoi Drainage Project for Environmental Improvement (II) 29,289 million yen

(4) Transport Sector Loan for National Road Network Improvement (II) 17,918 million yen

Total 83,201 million yen

Outline of the Projects

(1) Hanoi City Urban Railway Construction Project (Nam Thang Long – Tran Hung Dao (Line 2)) (I)

This project is to construct an 11.5-km stretch in the highest priority zone of the Urban Railway Construction Project from Noibai International Airport in northern Hanoi to Ha Dong in southwestern Hanoi (41.5 km), with a view to alleviating traffic jams and air pollution in Hanoi, the capital of Viet Nam and the center of the economy in the North.

(2) Hai Phong City Environment Improvement Project (II)

In Hai Phong, the third biggest city of Viet Nam, this project is to construct existing sewerage and drainage facilities (sewage pipe network, sewage treatment plants, rehabilitation of drainage pipes, etc.) and solid waste collection and treatment facilities (solid waste landfills, solid waste collection trucks, etc.), with a view to improving water quality and mitigating flood damage.

(3) Second Hanoi Drainage Project for Environmental Improvement (II)

In To Lich River valley in the capital Hanoi, an industrializing and population-concentrating area, this project is to construct sewerage and drainage facilities (sewage pipe network, sewage treatment plants, pump stations, flood adjustment ponds, etc. ), with a view to improving water quality and easing flood damage.

(4) Transport Sector Loan for National Road Network Improvement (II)

This project is to repair or replace flimsy bridges on national and provincial roads throughout the country and also to improve maintenance system for roads and bridges, with a view to keeping the road network safe and highly reliable.

Terms and conditions of the loan

Project: (1)

(a) Interest rate: 0.2% per annum (Special Terms for Economic Partnership :STEP) (0.01% per annum for consulting services)

(b) Repayment period: 40 years (including a ten-year grace period)

Project: (2) and (3) Second Hanoi Drainage Project for Environmental Improvement (II)

(a) Interest rate: 0.55% per annum (preferential terms) (0.01% per annum for consulting services)

(b) Repayment period: 40 years (including a ten-year grace period)

Project: (4)

(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)

(END)