Monday, December 5 2016

VietNamNews

Deputy PM stresses need to speed up ODA disbursement and loans

Update: October, 20/2016 - 09:00
Workers from investor Sumitomo Mitsui work on the construction of the Tân Vũ–Lạch Huyện car road in Hải Phòng City. The project is part of an infrastructure project for the city’s Lạch Huyện Habour, with a total investment of VNĐ11.8 billion (US$531,000) in ODA from Japan. — VNA/VNS Photo Huy Hùng
Viet Nam News

HÀ NỘI — Hastening the disbursement of official development assistance (ODA) and preferential loans remains a huge task for the remaining two months of this year in the context of increasing public debts and limited resources, said Deputy Prime Minister Phạm Bình Minh.

The official made the remarks at a workshop on accelerating the implementation and disbursement of ODA programmes and projects in Hà Nội on Tuesday.

Minh, who is also head of the National Steering Committee for ODA and Preferential Loans, emphasised the need to disburse more than US$22 billion of ODA and concessional loans committed to Việt Nam for 2017-2020.

He explained that slow implementation and disbursement could result in higher project costs.

The Deputy PM urged ministries, agencies and localities to prepare for the projects and fulfill their commitments regarding compensation, land clearance, human resources and corresponding capital, noting that land clearance is a big problem for infrastructure projects.

With attention on the use of ODA and concessional loans, the Vietnamese Government has taken steps to speed up the disbursement and raise the efficiency of the capital, he said.

The official cited Government Resolution No. 60/NQ-CP on hastening the actualisation and disbursement of public investment capital in 2016 and the Law on International Treaties with regulations concerning the signing of international treaties on ODA.

At the workshop, World Bank (WB) Country Director for Việt Nam Ousmane Dione, on behalf of the Asia Development Bank, the French Development Agency, the German Development Bank, the Japan International Cooperation Agency, Korea Exim Bank and the WB, pledged further support to Việt Nam.

He expressed his belief that Việt Nam and the banks will join hands in addressing problems in carrying out these projects.

According to the Ministry of Planning and Investment, as of September 2016, over $4.9 billion of ODA and concessional loans were committed to Việt Nam, representing a 1.8-fold rise year-on-year.

Of the figure, only $2.68 billion was disbursed, equivalent to 81.4 per cent of the amount from the same time last year.

The projects mainly focus on transport, water supply and sewage, environmental hygiene, urban development and climate change response.

The ministry blamed the lack of corresponding capital, complicated institutional regulations and difficulties in land clearance for the sluggish implementation and disbursement of the loans. — VNS

 

 

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