15:06 | 05/08/2015 Investment
Germany and Vietnam have signed an agreement to provide more than EUR8.5 million for two environmental projects in Vietnam.
The financing will be used to support the conservation and sustainable use of forest biopersity and ecosystem services, and the second phase of the integrated coastal management programme (ICMP) in the Mekong River Delta.
Both projects are commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) with the Vietnamese Ministry of Agriculture and Rural Development being the lead executing agency.
The ICMP is co-financed by Australia’s Department of Foreign Affairs and Trade.
The two projects come in complement to existing technical and financial cooperation programmes under an agreement between the German, Australian and Vietnamese governments to promote sustainable development.
The forest biopersity project costs EUR$4.5 million, of which 90% comes from the German government’s non-refundable aid through BMZ while the rest is provided by the Vietnamese government.
The programme will work in three areas - legal frameworks, development of institutional capacity and timber legality - over three years to help establish the conditions necessary for the conservation and sustainable use of forest biopersity and ecosystem services.
Meanwhile the ICMP Phase II will work to institutionalise and scale up the solutions that have already been developed in the first phase in order to ensure their full impact on a broader scale.
The programme is designed to support the Vietnamese authorities in their efforts to strengthen the coastal area in the Mekong River Delta, and to cope with the environmental changes occurring there, while opening the way to sustainable growth.
Total budget for the programme is EUR8.8 million, of which Germany contributes US$4.5 million, Australia EUR3.5 million and the Vietnamese government EUR800,000 in counterpart funding./.