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Japanese official development assistance to Viet Nam will total nearly JPY26 billion (USD290 million) in the second half of the 2009 fiscal year. The new package was announced and signed on 2 March 2010 in Ha Noi  by Japanese Ambassador to Viet Nam Mitsuo Sakaba and Minister of Planning and Investment Vo Hong Phuc.

"The package will finance five specific projects that are of crucial importance to improving infrastructure in the capital and the Mekong Delta region," said Sakaba.

The new ODA would bring the total amount of ODA for the 2009 fiscal year to a record JPY145.6 billion (USD1.6 billion), the highest for a fiscal year so far, Phuc said.

Details about how the aid money would be spent were revealed at the ceremony. Nearly half the package, JPY12.6 billion, has been marked for expanding Ha Noi's Noi Bai International Airport Terminal. As part of a separate project, the Noi Bai-Nhat Tan Expressway (valued at JPY6.5billion) will also be funded with the money.

A further JPY4.6 billion (USD52 million) and JPY1 billion (USD11.2 million) have been allocated to the Can Tho Bridge construction project and the third phase of the National Highway 1 restoration project, respectively. The Government plans to repair the section of the highway that links Can Tho and Ca Mau in the Mekong Delta.

Another infrastructure project, the Hoa Lac High-Tech Zone, has also been marked for infrastructure upgrades valued at a total of JPY1 billion (USD11.2 million).

Phuc said the ministry would instruct relevant agencies as well as project investors on how the fund could be most effectively disbursed.

Following the receipt of the package, five credit agreements were scheduled for signing between the Ministry of Finance and the Japan International Co-operation Agency this month.

Source: Vietnam News