|A pig farm in Ha Noi's Thanh Oai District. Asian Development Bank loans will help transform Viet Nam's agricultural production into a more environmentally-friendly and sustainable system. – VNA/VNS Photo Dinh Hue
HA NOI (VNS)—The Asian Development Bank (ADB) will provide US$111.88 million in loans to Vietnamese low-carbon agriculture projects.
A $74 million loan from ADB's Asian Development Fund (ADF) will finance the Low Carbon Agricultural Support Project, which seeks to reduce pollution from agricultural waste and create a healthier environment in ten provinces.
Currently, agriculture creates up to 50 per cent of national greenhouse gas emissions. Livestock– a major part of life for people in rural areas – produce 35 per cent.
The Project Preparation and Startup Support Facility received a $37.88 million ADF loan in order to better implement ADB-financed projects and ensure that aid was used effectively.
The journey from preparing a project to making a loan effective is very long, according to ADB's Viet Nam Country Portfolio Review. Implementation difficulties, increased transactional costs and delayed development benefits reduce aid effectiveness and investment efficiency.
However, Kimura said that Viet Nam was beginning to move down a path of low-carbon climate resilient development with the adoption of the Green Growth Strategy.
"The ADB is ready to support Viet Nam to realise its vision of low-carbon and inclusive growth and accelerate its efforts to transform Viet Nam's agricultural production into a more environment-friendly and sustainable system," he said. — VNS