Japan and the US have agreed to provide aid for infrastructure development projects in Vietnam and other Southeast Asian countries according to public-private partnership (PPP) method.
The Japan International Cooperation Agency (Jica) will cooperate with the US Agency for International Development (USAID) to assist all phases of the infrastructure development projects in Southeast Asia, from planning to designing, purchasing, construction and management.
Jica and USAID plan to carry out the first cooperative project in Vietnam and submit to the Vietnamese government a plan to establish an investment fund in 2012.
Jica will set up a fund worth $400 – 500 million in March 2012 to support PPP projects. USAID will guarantee 50 percent of loans for projects which use capital from the fund and seek cooperation from financial organisations in Vietnam and the US.
Potential projects under the framework of the cooperative strategy between the two agencies include power plants, energy establishment, information and telecommunications, roads, and transport, and water supply and drainage systems.
Jica and USAID will also help other countries in the region, such as Indonesia, the Philippines, Laos and Cambodia.