An agreement on Economic Development Cooperation Fund of the Republic of Korea (EDCF) loans, worth 76 million USD, for three projects in Vietnam was signed in Hanoi on October 29.
The deal will provide for the construction of a southern coastal highway section with 70 million USD, the supply of medical equipment for a provincial hospital in the southernmost Ca Mau province with 3 million USD, and the supply of equipment for the Ayunpa vocational college in the Central Highlands province of Gia Lai with 3 million USD.
The deal offers soft annual interest rates at between 0.05 percent and 0.1 percent and 10-year grace periods. The loans will be repaid after 35 and 40 years.
At the signing ceremony, held by the Finance Ministry of Vietnam and the RoK Import-Export Bank, Deputy Finance Minister Tran Xuan Ha said the RoK Government has committed EDCF loans for over 30 projects in Vietnam with a combined investment of over 1 billion USD.
With a commitment to 1 billion USD in credits for the 2008-11 period, the RoK has become one of the leading donors to Vietnam . In addition to providing credits for major infrastructure projects, the RoK Government has given financial assistance to hospitals at district and provincial levels and vocational training projects, thus contributing to sustainable development in Vietnam .
Many of these projects, such as a highway 18 section, the Ba Ria thermal power plant and the Thien Tan water work in the Mekong Delta province of Dong Nai, have been put into operation.
The Ministry of Finance took this opportunity to present Dongsoo Kim, President of the RoK Import-Export Bank, with the Insignia for the Financial Sector’s Development.
