ADB enhances climate agriculture and aid effectiveness

“With the adoption of the Green Growth Strategy, Vietnam is beginning to move onto a path of low carbon climate-resilient development,” said ADB country director for Vietnam Tomoyuki Kimura.

 “The ADB is ready to support the country to realise the vision of low carbon and inclusive growth and accelerate its efforts to transform Vietnam’s agriculture production into a more environment-friendly and sustainable system,” added Kimura.

According to the ADB, agriculture is the largest contributor, accounting for 50 per cent of the national green house gas emissions, out of which livestock raising contributes 35 per cent of the GHG emissions.

Livestock production contributes to poverty reduction and economic prosperity in the rural areas. However, growing numbers of farmers and medium- to large-scale enterprises raising livestock is increasingly putting stress on the environment.

The $74 million loan from ADB’s Asian Development Fund (ADF) will finance the Low Carbon Agricultural Support Project.
This will focus on mainstreaming climate-smart agricultural waste management practices by supporting the waste management infrastructure, providing credit lines for biogas value chains and facilitating transfer and deployment of improved technologies for agricultural waste management.
The project will reduce pollution from agricultural waste and create healthier environment and livelihoods in 10 provinces in Vietnam.

Another $37.88 million ADF loan signed was for the Project Preparation and Startup Support Facility which will enable the government to better startup, prepare and implement ADB-financed projects to ensure effective aid utilisation.

Based on Vietnam Country Portfolio Review by ADB, it takes long to go through the process from project preparation to loan effectiveness, project startup and first contract award.
These, in turn, cause unnecessary implementation difficulties, increased transactional costs, and delayed development benefits, which subsequently reduce aid effectiveness and investment efficiency.

“We strongly believe that with the facility, the government together with ADB and other development partners will adequately address the technical, institutional and financial shortcomings to startup ODA-funded projects,” Kimura added.

The ADB is co-chair of the Vietnam’s Aid Effectiveness Forum 2013.