AFD Pledges EUR123Mln for Vietnam's Infrastructure Projects

The French Development Agency will provide EUR123.4 million in official development assistance to help Vietnam implement three infrastructure development projects. FDA and the Ministry of Finance of Vietnam signed three agreements February 8 in Hanoi. The three 20-year loans are provided at a preferential interest rate.

 

“This is the first time AFD signed such huge loans for Vietnam, accounting for 80 per cent of the total pledged commitments for the country in 2006,” said French ambassador to Vietnam Jean-Francois Blarel.

 

In the first project, AFD will provide EUR80 million to help Vietnam build a railway route in Hanoi linking a railway station in Tu Liem district on the outskirts and the inner Hanoi Railway Station.

 

AFD will also fund EUR32 million to a project upgrading a 285-km railway system from Hanoi to the northern border province of Lao Cai, scheduled to be carried out from now until 2012. The line is expected to boost economic and tourism development in northern provinces.

 

The remaining EUR11.4 million will be pumped in construction of public works to prevent floods at two sections of the Sai Gon River in Ho Chi Minh City and southern Binh Duong province.

 

AFD will also give EUR350,000 in non-refundable aid for these projects.

 

AFD has provided EUR720 million in ODA to Vietnam since 1994. (Vietnam Economic Times, Youth)