Signing of Japanese ODA Loan Agreement with Viet Nam: Contributing to reducing poverty and inequalities, while enhancing resilience to climate change through development of small-scale infrastructure in northern and mountainous regions

On May 1, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Socialist Republic of Viet Nam in Hanoi, to provide Japanese ODA loan for the following two projects. The signatures were exchanged between Vice Minister of Finance Tran Quoc Phuong of the Socialist Republic of Viet Nam and Chief Representative Kobayashi Yosuke of JICA Viet Nam Office.

Terms and Amount of Loan

- Country (Target Areas)
Socialist Republic of Viet Nam
（Lao Cai Province, Dien Bien Province, Tuyen Quang Province, Son La Province, Lai Chau Province）

- Project Objective
The objective of the Project is to strengthen climate resilience and disaster adaptation, improve the livelihoods and living conditions, and close the disparities through improving accessibilities, increasing agricultural productivity, and reducing damages by natural disasters, by development and improvement of small-scale infrastructure such as roads, irrigations and embankments in six northern provinces, where there are many residents being vulnerable to the natural disaster, living in poverty and lacking of access to the market and public communities.

- Project Component
The scope of the subprojects currently envisaged (a total of 90 subprojects across the five provinces) is as outlined below.
1. Civil Works
Road subprojects: 41 subprojects(rehabilitation and construction of provincial and district roads, including small‑scale bridges; pavement improvement; drainage works; installation of guardrails, etc.)
Irrigation subprojects: 29 subprojects(rehabilitation and construction of intake facilities, canals, reservoirs, and related structures)
Riverbank protection subprojects: 20 subprojects(rehabilitation and construction of riverbank protection facilities)
2. Consulting Services
Detailed design of subprojects, Construction supervision, Environmental monitoring and progress reporting, Support for the collection of baseline data for operational and outcome indicators, Preparation of audit reports

- Maximum Loan Amount
21,590 million Japanese Yen

- Annual Interest Rate
Project: 2.25%

- Repayment Period
30 Years

- Grace Period
10 Years

- Procurement
General untied

- Executing Agencies
1. Supervising Agencies:
Lao Cai Provincial People’s Committee
Dien Bien Provincial People’s Committee
Tuyen Quang Provincial People’s Committee
Son La Provincial People’s Committee
Lai Chau Provincial People’s Committee

2. Executing Agencies:
Lao Cai Transportation Woks Construction Investment Project Management Unit
Lao Cai Provincial Construction Investment Project Management Unit No.1
Agriculture Works and Rural Development Project Management Unit for Dien Bien Province
Tuyen Quang Provincial Coordination Unit for Foreign Funded Projects
Construction Investment Project Management Unit for Agriculture and Rural Development project, Son La Province
Construction Investment Project Management Unit for Agriculture and Rural Development project, Lai Chau Province

- Contribution to SDGs
Goal 1（No poverty）
Goal 2（Zero hunger）
Goal 3（Good health and well-being）
Goal 10（Reduced inequalities）
Goal 13（Climate action）

- Planned Implementation Schedule
Completion of the Project: October 2030, upon the commencement of operation of all facilities

- Country (Target Areas)
Socialist Republic of Viet Nam
（Tuyen Quang Province, Thai Nguyen Province, Lang Son Province, Cao Bang Province）

- Project Objective
The Project aims to contribute to the improvement of living conditions, the reduction of regional disparities, and the strengthening of resilience to climate change in the region by developing small‑scale basic infrastructure (roads, irrigation, and water supply) in four provinces in the Northern mountainous region, where poverty is widespread. Through these interventions, the Project seeks to improve access to public services and markets, enhance agricultural productivity, and increase the capacity for the provision of safe and hygienic water.

- Project Component
The scope of the subprojects currently envisaged (a total of 28 subprojects across the four provinces) is as outlined below.
1. Civil Works
Road subprojects: 19 subprojects(rehabilitation and construction of provincial and district roads, including small‑scale bridges; pavement improvement; drainage works; installation of guardrails, etc.)
Irrigation subprojects: 7 subprojects(rehabilitation and construction of intake facilities, canals, reservoirs, and related structures)
Water supply subprojects: 2 subprojects(construction of intake facilities, reservoirs, water pipelines, and water treatment facilities)
2. Consulting Services
Detailed design of subprojects, Construction supervision, Environmental monitoring and progress reporting, Support for the collection of baseline data for operational and outcome indicators, Preparation of audit reports

- Maximum Loan Amount
17,666 million Japanese Yen

- Annual Interest Rate
Project: 2.30%

- Repayment Period
30 Years

- Grace Period
10 Years

- Procurement
General untied

- Executing Agencies
Supervising Agencies:
Tuyen Quang Provincial People’s Committee
Thai Nguyen Provincial People’s Committee
Lang Son Provincial People’s Committee
Cao Bang Provincial People’s Committee

Executing Agencies:
Tuyen Quang Provincial Coordination Unit for Foreign Funded Projects
Thai Nguyen Provincial Project Management Unit for Transport and Agriculture Construction Investment
Northern Transport and Agricultural Works Construction and Investment Project Management Unit (under Thai Nguyen Provincial People’s Committee)
Lang Son Provincial Construction Investment Project Management Unit
Cao Bang Provincial Project Management Unit for Investment and Construction

- Contribution to SDGs
Goal 1（No poverty）
Goal 2（Zero hunger）
Goal 3（Good health and well-being）
Goal 10（Reduced inequalities）
Goal 13（Climate action）

- Planned Implementation Schedule
Completion of the Project: December 2030, upon the commencement of operation of all facilities