Vietnam, France exchange funding agreement for climate change projects

At the event (Photo: tapchitaichinh.vn)

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./.