Canada Provides CDN19Mln to Vietnam for Reduction Poverty

Canada Provides CDN19Mln to Vietnam for Reduction Poverty

The Head of Aid and Counsellor (Development) at the Canadian Embassy, Mr. Dean Frank and the World Bank Country Director, Mr. Klaus Rohland, signed a grant arrangement between the Canadian International Development Agency (CIDA) and the World Bank on the co-financing of the Poverty Reduction Support Credit (PRSC) for Vietnam on February 24.

CIDA’s grant valued CDN $19 million over three years 2004-2005 to 2006-2007 will be used for the third, fourth and fifth operations of the PRSC which supports the Government of Vietnam's implementation of reforms outlined in its Comprehensive Poverty Reduction and Growth Strategy (CPRGS).

Mr. Frank praised the PRSC process in Vietnam and said that CIDA’s contribution to the PRSC showed Canadian trust in Vietnam in implementing reforms that promote equitable and sustainable economic growth, poverty reduction, and transparent and accountable governance. This grant was part of CIDA’s effort to improve aid effectiveness and to promote aid harmonization in Vietnam. He also mentioned that, thanks to its participation to the PRSC process, Vietnam was immediately eligible for Canada’s recent initiative on debt relief.

The PRSC is a 5-year concessional budget support loan put in place in 2002 by the World Bank. The PRSC is co-managed by the World Bank and Vietnam and is provided in annual amounts of US$100 million, plus grants from other donors. Implementation of reforms for the first two years (PRSCs 1 and 2) has been largely successful. Canada is actively participating in discussions between donors and the Government of Vietnam in areas core to the PRSC such as public administration reform, financial sector reform, environment, and legal reform.

• T.H