The Japan International Cooperation Agency ( JICA ) has signed an agreement with the Vietnamese government to provide an official development assistance loan of 18.871 million yen ( US$148.4 million ) to help the country better counter disasters and climate change.

The loan will be used for Vietnam’s Project for Disaster and Climate Change Counter Measures and will involve buying an earth observation satellite, equipment and related facilities for satellite development.

Proceeds will also help foster the use of data acquired from the satellite, develop the capabilities of related personnel in Vietnam to operate maintain the facilities and equipment, and contribute to improving the living and social conditions in the country.

For the entire project, financing of 7.227 million yen ( US$56.83 million ) was allocated via the first loan in November 2011, JICA says. The newest loan, the second, was signed on May 23 in Hanoi.

The project, according to JICA, allows the application of Japanese technology under JICA’s Special Terms for Economic Partnership ( STEP ), including quick delivery of the small, cost-efficient and high-performance synthetic aperture radar to be used in the project’s satellite.

STEP refers to special assistance terms for promoting the visibility of Japanese aid through the transfer of Japanese technology and expertise to developing nations.