The Japanese International Cooperation Agency (JICA) and Vietnamese Government have signed an official development assistance loan agreement worth JPY95 billion (US$852 million) to implement three traffic projects and a climate change adaptation project.
The three traffic works include Da Nang-Quang Ngai expressway, Lach Huyen seaport in Hai Phong city and bridges and roads leading to the port.
Under the agreement, JPY30 billion will be spent on the expressway at the annual interest rate of 1.4 percent for construction part and 0.01 percent for service part. Payment deadline will be 30 years plus a ten year grace period. This project has no binding tender conditions.
The funds for the port and leading roads and bridges will be JPY55 billion with binding tender conditions. The interest rate will be 0.1 percent a year for the construction part and 0.01 percent for the service part.
The rest JPY10 billion will be used for the climate change adaptation project at the average interest rate of 0.3 percent a year.