Annually Vietnam may have to pay between JPY20-25 billion of ODA debts to Japan according to the chief representative of the Japan International Cooperation Agency at a press conference.

JICA’s chief representative Motonori Tsuno.

Japan began providing ODA grants to Vietnam in 1992, with JPY44.5 billion. It reached JPY202 billion (over $2 billion) last year, turning Vietnam into the largest ODA recipient. Last year the volume of disbursed ODA hit a record of JPY121.5 billion. Vietnam also paid ODA debts worth nearly JPY21 billion to Japan in 2009.

JICA’s chief representative Motonori Tsuno, said that JICA doesn’t immediately disburse the whole committed ODA grant but it spends that grant gradually during a construction period of between five and seven years.

JICA estimated that at present, Vietnam has to pay ODA debts worth JPY20-25 billion a year. However, Japan should worry about Vietnam’s payment ability accordingto Motonori Tsuno.

He said that if Vietnam’s economy is more healthy this year, Vietnam may not need Japan’s aid so the committed amount may not exceed JPY202 billion. Last year Japan provided $500 million of urgent aid to Vietnam to help the country cope with crisis and economic slowdown.

“I think and hope that Vietnam won’t need urgent aid anymore. Without urgent aid, the committed ODA grant in 2010 will not exceed the total aid of 2009,” Motonori Tsuno said.

This year many Japanese ODA-funded projects will be implemented in the form of public-private partnership (PPP). According to JICA official, exclusive of projects to transfer Japanese technology to Vietnam, normal projects are open to businesses from other countries, not just Japan.

The first ODA project in the form of PPP is the one to build the Lach Huyen Port.

In 2010, many important ODA-funded projects will be carried out. This March, Vietnam and JICA will sign a loan agreement for the new terminal of the Noi Bai airport and the Noi Bai – Nhat Tan highway. The two countries will also sign a loan agreement for the first phase of the Hoa Lac Hi-tech Park.

To celebrate the 1000^th anniversary of Hanoi, Japan will promote the Nhat Tan bridge project and the remaining part of the Thanh Tri Bridge and belt road No.3. It will also speed up the selection of consultants for the Gia Lam – Giap Bat and Nam Thang Long – Tran Hung Dao urban railways.

Thuy Huong