France funds a major development project in HCMC

The French Development Agency (AFD) has offered Vietnam a loan worth EUR20 million, to finance a socio-economic development project in the southern city of Ho Chi Minh.

The project is part of cooperative activities between France and Vietnam.
Speaking at the signing ceremony on May 5, Minister of Finance Vu Van Ninh said that the project would help to build social housing and education institutes, reinforce hospitals’ capacity in receipting and caring for patients and modernise waste collection and management.

The total cost of the programme is EUR96 million, with AFD providing partial finance, estimated at 20 percent of the total, through the Ho Chi Minh Finance and Investment Company (HFIC), the first investment fund established in Vietnam to finance medium-scale urban infrastructure projects.

AFD was the first sponsor of HFIC, through aid worth EUR30 million in 2006. The funding was disbursed to social housing projects and education, health care and environment projects.

With the financing agreement, the total (official development assistance (ODA)) commitment of AFD to Vietnam amounted to almost EUR1.050 billion.

++ AFD also agreed to provide Vietnam with EUR2.5 million in non-refundable aid to support the country’s medical sector.

Two grants were signed by Minister of Planning and Investment Vo Hong Phuc and AFD Director General Dov Zerah in Hanoi on May 5.

Accordingly, AFD will offer an additional EUR1.5 million to the expertise and capacity building fund (FERC No.2) to finance future projects in Vietnam.

The aid provided by FERC No 2 is seen as an effective tool to help central agencies, localities and associations improve their capacity while carrying out projects combating climate change.

Another grant worth EUR1 million aims to provide technical assistance for Hanoi Medical University Hospital, upgrading medical training equipment and improving the quality of healthcare services. – VOV

Tags: Vietnam Infrastructure