Last updated: Thursday, March 23, 2017
Vietnam Speeding up ODA, Preferential Loan DisbursementPosted: Monday, October 31, 2016
Recently, the National Steering Committee on ODA and preferential loans held a meeting to accelerate the disbursement of these two important sources.
As reported by Deputy Minister of Planning and Investment of Vietnam, Mr Nguyen The Phuong, total ODA and preferential loans signed during the first 9 months of this year reached over US$4.9 billion, 1.8 times that of the same period last year. This surge is due to a number of Japanese ODA loans expected to be signed in fiscal year 2015 being delayed to fiscal year 2016.
The total capital has increased but the total disbursed ODA and preferential loans in the first 9 months of this year was only 52.6 percent of the planned disbursement in 2016, accounting for 81.4 percent of the disbursement in the same period last year.
In the last 9 months, the disbursement of JICA was US$1,259 billion, World Bank US$691 million, ADB US$639 million, KEXIM US$75 million, AfD US$18 million and KfW US$78.54 million.
"Overall, the level of ODA and preferential loans disbursement in the first 9 months is uneven between ministries, branches and localities. Many projects have a low level of disbursement, or even have not disbursed the 2016 plan," Deputy Minister Nguyen The Phuong assessed, noting that the disbursement of ODA and preferential loans in 2016 would have difficulty achieving the level of US$4.65 billion of 2015.
Addressing the conference, Deputy Prime Minister Pham Binh Minh requested ministries, branches and localities to focus on disbursement of funds under the plan set for 2016. In the period from 2017 to 2020, Vietnam has mobilised over US$22 billion of ODA and preferential loans. However, the progress of implementation and disbursement of ODA programmes and projects in the first 9 months of 2016 was very low.
Deputy Prime Minister noted the experience of some countries like India in the preparation of project readiness, especially the clearance problem, so that when the agreement is signed, we can embark on immediate implementation.
The Ministry of Planning and Investment is assigned to coordinate with the Ministry of Finance and donors to build and put into operation in 2016 a coordination mechanism to share information among agencies of Vietnam and donors in planning and supervising the implementation of the plan; and submit to the competent authorities an additional adjustment plan close to real projects.
The Ministry of Finance in coordination with the Ministry of Planning and Investment will submit to the Government the debt restructuring plan in order to assure the safety of public debt at the same time meet the policy of maximum mobilisation of ODA and preferential loans.
"In 2016, it is required to complete a draft decree for local governments to borrow ODA and preferential loans under the principle of using ODA and preferential loans in line with the direction and priorities of the Government of Vietnam," said Deputy Prime Minister.
In addition, the Deputy Prime Minister asked the Ministry of Natural Resources and Environment to issue guidelines within 2016 on the process clearance to accelerate clearance compensation and resettlement programs and projects using ODA and preferential loans.
The Ministry of Construction will soon complete revision of Decree 59 of 2015 on the management of construction investment in the direction of simple processes and procedures, increased decentralization of approving the plan and designing construction investment projects.