The Republic of Korea (RoK)’s Ministry of Strategy and Finance on May 19 approved a 77 million USD loan for irrigational system upgrade projects in Vietnam’s central provinces of Thanh Hoa and Nghe An.

The loan will be provided through the Economic Development Cooperation Fund (EDCF).

The two projects will construct dyke and canals to bring water from Thanh Hoa’s Len river and Nghe An province’s Hoang Mai river to water local fields, while contributing to improving ecological environment, coping with climate change and rising seawater level.

Earlier, a working delegation from EDCF and the RoK’s Bank of Export- Import (EximBank) conducted a field research in the two provinces in late 2014.

EDCF is founded by the RoK government since 1987 and currently run by the EximBank. The fund aims to provide preferential loans for poor and under-developed countries to help them build infrastructure and contribute to bolster economic relations between RoK and other countries.

According to the RoK’s Ministry of Strategy and Finance, which decides the provision of EDCF loans, the country has lent 11 trillion KRW (10 billion USD) via EDCF funding by the end of 2014, and plans to lend another 1.4 trillion KRW this year.-VNA