JICA provides ¥39.3B for climate-resilient rural development projects

Recently, the Ministry of Finance held a signing ceremony for 11 sub-loan agreements financed by loans from the Government of Japan through the Japan International Cooperation Agency (JICA). The agreements involve eight northern mountainous provinces and have a total value of 39.256 billion yen (approximately 6.68 trillion VND).

The beneficiary provinces include Cao Bang, Dien Bien, Lai Chau, Lang Son, Lao Cai, Son La, Thai Nguyen and Tuyen Quang.

Speaking at the ceremony, Deputy Minister of Finance Tran Quoc Phuong said these were the first sub-loan agreements to implement bilateral loan arrangements, signed after Viet Nam's administrative restructuring and the introduction of a two-tier local government model.

The funding will be used to implement two projects: Climate-resilient infrastructure development supporting ethnic minority communities in the northern mountainous and midland regions; and Disaster-resilient rural development.

According to Tran Quoc Phuong, the projects carry significant socio-economic importance, helping strengthen resilience to climate change and natural disasters, improve rural infrastructure, promote sustainable livelihoods and enhance living standards, particularly in disadvantaged areas.

The signing of the sub-loan agreements also establishes the responsibilities of local authorities in managing and efficiently utilizing the borrowed funds, while ensuring the fulfillment of debt repayment obligations to the central budget, thereby contributing to public debt safety and fiscal discipline.

At the ceremony, representatives of participating provinces signed a commitment to fully disburse 100% of JICA loan funds in accordance with the agreed implementation schedule.

¥ 1 = VND 168.68 - Source: Vietcombank.