July 30, 2020
On July 28, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Socialist Republic of Viet Nam in Hanoi to provide a Japanese ODA loan of up to 36.626 billion yen for the Maritime Security and Safety Capacity Improvement Project.
Viet Nam is a narrow, long country lying along a north/south axis with a long coastline. There has been an increasing risk of maritime accidents in recent years due to, (i) an increase in fishery activities and freight transportation, and (ii) a rise in natural disasters in the form of Typhoons in summer and tidal waves in the monsoon season. In addition, there has been a rising risk of maritime crimes including smuggling and piracy. This project will provide the Vietnam Coast Guard (VCG) with financing to procure vessels, supporting an improvement in maritime rescue operations and maritime law enforcement. It will also enhance freedom of navigation. The Project will contribute to the achievement of SDGs Goals 14 and 16 and the realization of a free and open Indo-Pacific.
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japanese shipbuilding technologies will be utilized.
* STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.
Details for the project are provided below.
|Annual interest rate (%)||Repayment
|Maritime Security and Safety Capacity Improvement Project||36,626||0.1||0.01||40||10||Japan tied|
2. Executing Agency
Vietnam Coast Guard
Address: Km6_826 Thang Long Boulevard,
Tay Mo Ward, Nam Tu Liem District, Hanoi, Viet Nam
3. Planned Implementation Schedule
(i) Completion of project: October 2025 – when the 6th Vessel is handed over
(ii) Issuance of invitation for Consulting Services (including construction supervision): August 2020
(iii) Tender announcement of international competitive bidding on project construction: Procurement package title: Construction Work
Release date: October 2021
4. JICA Contact Information
For further information about the procurement schedule, please contact the party listed below.
JICA Viet Nam Office
Address: 11th Floor, CornerStone Building, 16 Phan Chu Trinh Street, Hoan Kiem District, Hanoi, Viet Nam