The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-Hoon, "Korea Eximbank") announced on March 19 that the bank will provide a USD 25 million EDCF* loan to fund the 'Thien Tan Water Supply System Project phase II' and the 'Support Program to Respond to Climate Change phase III' to be implemented by the government of Vietnam.
* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with the developing world and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee. The total KRW 11,637.7 billion(acceptance criteria) has provided to 334 projects of 55 countries as of the end of February this year.
Executive Director and Head of EDCF Operations Group Yim Seong-hyeog met with General Director Truong Chi Trung of the Vietnamese Ministry of Finance and signed the loan agreement in Hanoi, Vietnam.
The Vietnam 'Thien Tan Water Supply System Project phase II', to which EDCF will borrow USD 15 million, is expected to bring about huge improvements in public sanitation as well as help develop the local economy by supplying water for industrial and residential usage in the province of Dong Nai.
Though a USD 26 million EDCF loan was originally provided to this project in 2007, subsequent financial troubles caused by the 2008 financial crisis has necessitated this USD 15 million supplemental loans.
It is anticipated that this loan agreement will consolidate Korea's image as Vietnam's key partner of economic growth.
Meanwhile, the Support Program to Respond to Climate Change, which is to receive a USD 10 million EDCF loan, is an outgrowth of Vietnam's Target Program to Respond to Climate Change (NTP-RCC) and is aimed at developing and implementing policies and strategies for the mitigation of and adaptation to climate change, with support from international donor organizations.
Five major donor organizations including the World Bank, AFD (France), JICA (Japan), and DAFT (Australia) are currently participating in the program.
The participating donor organizations work jointly with the government of Vietnam to develop climate change-related policies and strategies, and then provide loans on the basis of their implementation levels.
This year's total loan to be provided by the five agencies amounts to USD 220 million.
The project is expected to make a huge contribution to the capacity of the government of Vietnam to respond to climate change.
Korea, for its part, would secure an international status commensurate to its role as the host country of the Green Climate Fund (GCF), as well as consolidate its leadership in global efforts to address climate change.
Executive Director and Head of EDCF Operations Group Yim Seong-hyeog remarked, "This loan agreement will help to enhance economic cooperation and friendship between our two countries". He added, "Going forward, we will actively support Vietnam's initiatives in various areas such as climate change and the environment in addition to supporting social and economic infrastructure projects, taking into account Vietnam's level of national development."
Prior to the signing ceremony, Korea Eximbank also singed a loan agreement on March 17 to provide a USD 56 million EDCF loan to fund the 'IT Infrastructure Construction Project' in Myanmar.
Executive Director Yim met with Deputy Director U Khin Maung Tun of Myanmar Posts and Telecommunications and signed the loan agreement in Naypyidaw, Myanmar.
This project involves the construction of optical communication networks in 37 cities in Myanmar, and is hoped to bring huge advances in the country's information and communications technology (ICT) base.
