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【SDGs logo】CLIMATE ACTION

May 24, 2022

Signing of Japanese ODA Loan Agreement with Viet Nam: Strengthening Disaster and Climate Change Countermeasures with Earth Observation Satellite

On May 23, 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 18,871 million yen for the Project for Disaster and Climate Change Countermeasure using Earth Observation Satellite (II).

This project will enhance Viet Nam’s risk reduction for and response to disasters and climate change by providing the financing to procure an earth observation satellite, equipment, and related facilities for satellite development. It will also promote the utilization of data acquired from the satellite, and develop the capabilities of related personnel in Viet Nam to operate and maintain the facilities and equipment, thereby contributing to improving the living and social conditions in Viet Nam.
This project will contribute to the achievement of SDGs (Sustainable Development Goals) Goal 13 (Climate action).

For the overall project, funds of 7,227 million yen were allocated under the first loan in November 2011. The present loan is secondary to the aforementioned loan.

This project allows for the application of Japanese technology under Special Terms for Economic Partnership (STEP)*, including quick delivery of small, cost-efficient and high-performance synthetic aperture radar to be utilized in the satellite procured under this project.

* 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. Although the main contract allows a joint venture with the borrowing country in addition to the Japanese company and its subsidiary with an overseas presence, the Japanese company must be the leading partner in such an arrangement.

Details for the project are provided below.

1. Terms and Amount of Loan

Project title Amount
(million yen)
Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Project for Disaster and Climate Change Countermeasure Using Earth Observation Satellite (II) 18,871 0.1 0.01 40 10 Japan tied

2. Executing Agency
Vietnam National Space Center
Address: 18 Hoang Quoc Viet, Hanoi, Vietnam
Phone: +84 -24- 37917675, fax: +84 -24- 37627205

3. Planned Implementation Schedule
(1) Completion of project: December 2023 (Launch of the satellite)
(2) Issuing of letters of invitation for consulting services (including detailed design work): Already hired
(3) Tender announcement of initial procurement package for international competitive bidding on project construction:Already contracted

4. JICA Contact Information
For further information about the procurement schedule, please contact the party
listed below.
JICA Viet Nam Office
Address: 11th Floor, Corner Stone Building, 16 Phan Chu Trinh Street, Hoan Kiem District, Hanoi, Viet Nam
Phone: +84-24- 38315005 , fax: +84-24- 38315009

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