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ADB and Japan to Assist Co Tu Ethnic Minorities Affected by Song Bung 4 Hydropower Project

NAM GIANG, QUANG NAM, VIET NAM (31 October 2008) – – The Asian Development Bank (ADB) and the provincial government of Quang Nam today signed a $2 million grant financed by Japan Fund for Poverty Reduction (JFPR) funded by the Government of Japan, to support the resettlement and livelihood program for the people, who are predominantly indigenous Co Tu minorities, affected by the Song Bung 4 Hydropower Project, in one of the poorest and most remote parts of central Viet Nam.

Le Minh Anh, Chairman of Quang Nam Provincial People’s Committee, and Ayumi Konishi, ADB’s Country Director for Viet Nam, signed the agreement. Tomohiro Fujiyama of the Japanese Embassy and other senior officials of Quang Nam province witnessed the ceremony.

The grant will finance a program aimed at improving and sustaining the livelihoods of the community as well as people in downstream areas affected by the hydropower project. The assistance includes development of wetland rice crops to help residents improve food security, livestock training and veterinary programs as well as sustainable aquaculture and agri-forestry programs.

“Socially-inclusive and environmentally-sustainable economic growth is a key pillar in ADB’s country strategy for Viet Nam,” said Mr. Konishi at the signing ceremony. “The project presents a new way to conduct resettlement by supporting livelihood improvement of affected people on a long-time basis. It will demonstrate how resettlement can be considered as a development opportunity particularly for the poor and vulnerable people.”

The program supported by the grant will be implemented at the district and commune level and will train local- level officials on sustainable livelihood development of ethnic minority people affected by large infrastructure projects.

On 6 October 2008, the Government of Viet Nam and ADB signed a $196 million loan for the Song Bung 4 Hydropower Project which is designed to generate 156-megawatt of electricity. In addition to ADB, Viet Nam Development Bank lends $22.3 million and Viet Nam Electricity (EVN) provides $49 million for the project.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.

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