09:18 | 06/06/2015 Science - Technology
(VEN) - The French Development Agency (AFD) and the Vietnamese Ministry of Finance recently signed a credit agreement on the provision of EUR20 million for the fifth tranche of the Support Program to Respond to Climate Change in Vietnam (SP-RCC).
The signing ceremony for the credit agreement of the fifth tranche of SP-RCC
This program aims to assist the Vietnamese government’s reform agenda in various sectors to develop effective climate change mitigation measures and help the promotion of a low carbon development. The EUR20 million loan for the fifth tranche will raise the total AFD-committed funds for the SP-RCC to EUR100 million.
Along with the financial support, the AFD has provided Vietnam with technical assistance, contributing to the definition of energy efficiency targets in the steel sector, the preparation of an action plan on energy efficiency for buildings in the city of Da Nang, and the organization of seminars for Franco-Vietnamese discussions on public expenditure tracking on climate and renewable energies.
Addressing the signing ceremony, Deputy Minister of Finance Truong Chi Trung highly appreciated the AFD’s active contributions to Vietnam’s renovation, economic development, hunger eradication and poverty reduction efforts in recent years. Through many large-scale projects and programs, the AFD’s support has had practical effects in the fields of agriculture and rural development, urban infrastructure, finance and banking. Vietnam is one of the most vulnerable countries when it comes to the consequences of climate change, including global warming. The recently signed credit agreement underlined the joint efforts of the Vietnamese and French governments, and the AFD to help Vietnam implement its national strategies on climate change and green growth.
The AFD has provided official development assistance (ODA) from France to Vietnam since 1994. Total funding from the AFD Group for Vietnam has amounted to more than EUR1.6 billion, through 79 projects.
French Ambassador to Vietnam Jean Noel Poirier said that the funds for the SP-RCC would be disbursed based on the results of the policy dialogue and the reforms adopted.
Climate change mitigation is one of the strategic orientations of the AFD’s activities in Vietnam. In 2009, the AFD and the Japan International Cooperation Agency jointly initiated the SP-RCC by proposing a budget to be established to support the Vietnamese government’s actions related to the fight against climate change. Since then several international donors, including the World Bank, have joined the program. From 2006-2014, the AFD provided Vietnam with EUR471 million through 16 development projects with climate co-benefits in mitigation (public transport, energy) and adaptation (flood’s control, irrigation, conservation agriculture).
Different reforms supported in the framework of the SP-RCC will be presented by Vietnam during its preparation for the Paris Climate Conference (the 21st Conference of the Parties) to be held in Paris this December./.
By Phuong Tam