Japanese ODA Loan to the Socialist Republic of Viet Nam

March 2, 2010
Japanese

The Government of Japan has decided to provide a Japanese ODA loan of up to 25.822 billion JPY 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 2 (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) Terminal 2 Construction Project in Noi Bai International Airport (I)                                            12.607 billion JPY
(2) Noi Bai International Airport to Nhat Tan Bridge Connecting Road Construction Project (I)            6.546 billion JPY
(3) Cuu Long (Can Tho) Bridge Construction Project (II)        　　　　                                              4.626 billion JPY
(4) Third National Highway No.1 Bridge Rehabilitation Project (II)                                                    1.038 billion JPY
(5) Hoa Lac Hi-Tech Park Infrastructure Development Project (E/S)                                                 1.005 billion JPY
                                                                                                                                     Total   25.822 billion JPY
Outline of the Projects

(1) Terminal 2 Construction Project in Noi Bai International Airport (I)
This project is for the construction of Terminal 2 for international passenger use at Noi Bai International Airport in the capital city of Hanoi.
(2) Noi Bai International Airport to Nhat Tan Bridge Connecting Road Construction Project (I)
This project is for the construction of a connecting road between No Bai International Airport and Nhat Tan Bridge (currently being constructed as a Japanese ODA loan project).
(3) Cuu Long (Can Tho) Bridge Construction Project (II)
This project is for the construction of a bridge that is part of National Highway No. 1 that cuts across Vietnam from the north to south crossing a tributary of the Mekong River near Can Tho in the Mekong delta.
(4) Third National Highway No.1 Bridge Rehabilitation Project (II)
This project is for the repair and replacement of nine bridges on National Highway No. 1 in the southern Mekong delta region (from Can Tho to Ca Mau).
(5) Hoa Lac Hi-Tech Park Infrastructure Development Project (E/S)
This project is for carrying out investigations, etc. regarding basic infrastructure development of scientific and industrial technology accumulation center in the Hoa Lac district of Hanoi.
Terms and Conditions of the Loan

Projects: (1), (3)
     (a) Interest rate: 0.2 % per annum (Special Terms for Economic Partnership: STEP) (0.01% per annum for consulting services [(3) does not include consulting services])
     (b) Repayment period: 40 years (including a ten-year grace period)
     (c) Procurement method: Japan tied
Projects: (2), (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)
     (c) Procurement method: general untied
Project: (5)
     (a) Interest rate: 0.01% per annum (terms involved in consulting services)
     (b) Repayment period: 30 years (including a ten-year grace period)
     (c) Procurement method: general untied

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