JICA and Vietnam sign ODA loan agreements for climate-resilient infrastructure development

The first venture is for disaster-resilient rural development across Lao Cai, Dien Bien, Tuyen Quang, Son La, and Lai Chau provinces.

It aims to strengthen climate resilience and disaster adaptation while improving livelihoods and living conditions and reducing regional disparities. It seeks to improve accessibility, increase agricultural productivity, and minimise damage caused by natural disasters.

The initiative will develop and improve small-scale infrastructure, such as roads, irrigation and embankments in the northern provinces. Many residents in these areas are highly vulnerable to natural disasters, live in poverty, and lack access to markets and public services.

The venture features 90 subprojects across the five provinces, including transportation, irrigation, and riverbank protection. This is coupled with consulting services such as detailed engineering design, construction supervision, environmental monitoring, progress reporting, and audit report preparation.

The venture’s maximum loan value is ¥21.59 billion ($149 million), carrying an annual interest rate of 2.25 per cent and a repayment period of 30 years, including a 10-year grace period. The initiative is expected to be completed by October 2030, upon the operation of all facilities.

The second venture is the development of climate-adaptive infrastructure to support production for ethnic minority communities in the northern mountainous and midland areas. It will be implemented in Tuyen Quang, Thai Nguyen, Lang Son, and Cao Bang provinces.

The goal is 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 venture seeks to improve access to public services and markets, enhance agricultural productivity, and increase the capacity for the provision of safe and hygienic water.

It comprises 28 subprojects across the four provinces, focusing on improving access to public services and markets, enhancing agricultural productivity, and strengthening the capacity to provide clean water and sanitation to local communities.

The maximum loan amount for the second initiative is $122 million, with an interest rate of 2.3 per cent per year, a repayment period of 30 years, including a 10-year grace period. Completion is scheduled for December 2030.

These two ventures are expected to support Vietnam’s progress towards the Sustainable Development Goals, particularly in poverty reduction, food security, health and wellbeing, inequality reduction, and climate change resilience.

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