A document to this effect was signed in Tokyo on November 10 by representatives of the Japan International Cooperation Agency (JICA) and the Vietnamese Ministry of Finance.
The JICA Office in Vietnam said the figure represents the total ODA amount Japan has committed to Vietnam in the first half of its 2009 fiscal year lasting from April 1 to September 30.
The money will be injected into the national economic stimulus programme (47.9 billion Yen) and the 8th Poverty Reduction Support Credit (7 billion Yen). The remainder will be poured into projects to build the Thai Binh thermal electric power plant and its power transmission line network, develop small-sized infrastructure facilities for the poor, support small- and medium-sized businesses (phase III), use energy more efficiently and build roads of National Highway No1.
An annual interest rate of 1.2 percent will be applied to loans for these projects over 30 years with a 10-year grace period. The efficient energy project alone will enjoy an 0.25 percent interest rate over 40 years with a 10-year grace period.
JICA chief representative Motononi Tsuno, said that after the signing ceremony, Japan will quickly complete necessary procedures so that the capital will be disbursed by the end of the year.
He said JICA is currently working on qualifying other projects to receive Japanese ODA in the second half of the 2009 fiscal year. These will include Terminal No2 of Noi Bai International Airport, the Hoa Lac hi-tech park and a road linking Noi Bai airport to Nhat Tan bridge.