Slow ODA Disbursement Costs HCM City Huge Loss
Ho Chi Minh City is now facing huge losses due to slow disbursement of four among its six ODA-funded projects capitalized at $2.7 billion, an official from the municipal Economics and Budget Division said.
The one-day delay of these projects is estimated to cost the city about VND1 billion (US$62,500) for various expanses, said head of the division Nguyen Minh Hoang.
As of late July of this year, the stagnation was seen in the projects in the fields of improvement of water sources, environment, and public illuminating system with only 14 per cent and 17 per cent of the set plan on average was disbursed.
To effectively use ODA, Vietnam will carry out a new ODA utilization and management model from now to 2010, Vietnam Economic Times said.
Accordingly, the ODA allocation for projects will be based on the Vietnamese Government’s goals of socio-economic development and poverty reduction in the period.
Under the new model, Vietnam aims to reach ODA allocation rate of 75 per cent by 2010. (Youth, Vietnam Economic Times)
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