The World Bank has approved a credit of USD70 million for the second Vietnam climate change development policy operation, part of a series of three operations to support Vietnam’s institutional development which will help the country respond to climate changes.

The credit provides parallel financing under a multi-donor budget support program for the Government’s Support Program to Respond to Climate Change. Accordingly, JICA and AfD will jointly provide roughly USD145 million, AusAID will join with a first AUD8 million, and Korea Eximbank with USD30 million, bringing total support to about USD253 million in the context of the proposed operation.

This operation includes five policy actions, under the three thematic pillars of climate change adaptation, mitigation and cross-cutting issues. They focus on the water sector, energy sector, climate change integration into development planning and a more conducive environment for climate financing.

In particular, this policy operation has supported the development of a new Law on Water Resources, the adoption of regulations establishing the qualification and certification requirements for energy auditors and managers. It also helped with the establishment of a National Climate Change Strategy, the readiness for a national coordination platform for disaster risk reduction and climate change adaptation, and an institutional mechanism to promote climate – response financing sources.

The 25-year maturity - credit comes from the International Development Association has a 5-year grace period.

This series of operations contributes to assisting Vietnam with sustainable development and resilience – all are key elements of the World Bank's new Country Partnership Strategy with Vietnam for the 2012 – 2016 period./.

                                                                                                            CPV