Vietnam, France exchange funding agreement for climate change projects
Hanoi (VNA) – A ceremony took
place in Hanoi on March 15 to exchange the agreement
signed by the Vietnamese Ministry of Finance (MoF) and the French Development Agency (AFD) to fund two projects worth 72.3 million EUR (80 million USD) in
Vietnam.
The agreement supports the Hoi An anti-erosion and sustainable coastal protection project in the
central province of Quang Nam and the central coastal urban development project
for green growth and climate change response in Dong Ha city, Quang Tri
province.
Speaking at the event,
Deputy Minister of Finance Vo Thanh Hung said the committed loan amount further solidifies AFD's position
as Vietnam's largest bilateral donor in Europe, highlighting the French Government's
commitment to strengthening strategic partnership with Vietnam.
The AFD loan is accompanied by non-refundable
aid from the European Union (EU), aimed at improving project effectiveness and supporting localities in
enhancing their capacity to operate projects and undertake climate change
adaptation activities in localities.
Peteris Ustubs, European Commission Director for
the Middle East, Asia and Pacific, said investing in projects funded by the Water
and Natural Resources Management Facility (WARM) not only helps strengthen the
resilience of local communities but also contributes to the global fight
against climate change. They are in line with the EU's Global Gateway Initiative
to bridge the global investment gap and demonstrate the EU's commitment to
being a loyal partner of Vietnam in climate action and sustainable development.
On the occasion, representatives from the MoF, the People's
Committees of Quang Nam and Quang Tri provinces also signed loan agreements to
redistribute AFD loans from the central to local budgets to ensure the seamless
capital transfer and project effectiveness.
On December 29, 2023, the MoF signed loan agreements with AFD
and the non-refundable grant agreements from the EU, delegated
through the AFD, for the above two projects./.