The Japan International Cooperation Agency (JICA) signed a loan agreement on December 9 to provide up to US$7 million to Binh Duong Water Environment Joint Stock Company (BIWASE) in the Socialist Republic of Vietnam. This loan will contribute to the “Initiative for Overseas Investment and Loan to ASEAN” (*1) announced by the Japanese government in November 2019, and will be provided through co-financing with the Asian Development Bank (ADB). The ADB loan will be financed by US$6 million from the Leading Asia’s Private Infrastructure Fund (LEAP), which is funded by JICA.
Vietnam’s rapid urbanization and industrialization in recent years have resulted in a rapid increase in waste in urban areas. The lack of intermediate treatment facilities such as incineration and composting facilities has resulted in a lack of proper waste management, causing public health issues such as a shortage of landfill sites and air and soil pollution due to illegal dumping. Binh Duong Province, the target of this project, is adjacent to Ho Chi Minh City, the largest city in Vietnam, and has the highest population growth rate in the country. The province needs to expand its existing waste treatment facilities to meet the increasing demand for waste treatment in the region.
In addition, fertilizer prices continue to rise due to the situation in Ukraine, and there is a growing need for a stable supply of fertilizer to farmers. This project aims to contribute to the improvement of the urban environment and the realization of a circular economy in the region by supporting capital investment in the introduction of a waste composting plant with a capacity of 840 tons per day and financing the construction of a waste power incineration facility capable of processing 200 tons per day, The project will contribute to SDGs (Sustainable Development Goals) Goal 7 (energy), 11 (sustainable cities), and 12 (sustainable consumption and production). The project is also expected to reduce greenhouse gas emissions through waste recycling by composting.
© Source JICA