General Check-up on Slow Implementation of ODA Projects

Currently there are 55 Japanese ODA projects being implemented with a total registered capital up to US$12.71 billion, mainly in the areas of transportation, energy, infrastructure, agriculture, rural and education. With this project, the National Steering Committee on ODA and preferential loans has identified a number of difficulties and problems in the implementation process.

 

In particular, the biggest difficulty is the clearance issue, which focused primarily in Hanoi, such as Thanh Tri Bridge, Ha Noi-Thai Nguyen highway, Nhat Tan Bridge, Vinh Thinh Bridge and Ring Road 3.

 

Not only Nhat Tan Bridge itself, but the 12-km road connecting to Noi Bai International Airport is hard to be completed with Nhat Tan Bridge by schedule due to slow space transfer. In Dong Anh district, many high and low voltage electric lines as well as Van Tri temporary market have not been cleared. More than 300 households in Soc Son district haven't been resettled.

 

Delayed space transfer makes contractors pay more expenses such as money for office, labour, and machinery. Especially, Tokyu Contractor, executing package 3 in Nhat Tan Bridge project, has required the project owner who is the Ministry of Transportation to pay arising fees up to VND200 billion.

 

There are many projects and bidding process affected by arising causes due to slow preparation, lack of coordination between relevant agencies, particularly the North-South sea cable project, Thai Binh thermal power and environmental improvement project in Hai Phong.

 

Besides, there are also projects having a number of issues related to contracts which delay payments, lack of thorough preparation and implementation, and bad coordination between relevant units.

 

Mr Motonor Tsuno, Chief Representative of JICA in Vietnam, said that it has been 20 years since Japan resumed official ODA for Vietnam. During the last 20 years, Japan has helped Vietnam implement many important projects, especially projects related to infrastructure.

 

"Japan’s ODA for Vietnam comes from taxes of Japanese people, so it is very valuable. Therefore, we hope that the Government of Vietnam will effectively use the funds,” said Motonor Tsuno.

 

To overcome the problems encountered in recent years, Deputy Prime Minister Hoang Trung Hai has asked the Steering Committee to quickly set up inspection teams to monitor delayed projects and those having slow progress compared to the schedule. Based on the results, the Steering Committee will make plans to solve problems or propose appropriate mechanisms to improve the situation in the project, avoiding delays and wasted ODA resources, which is very important for socio-economic development.

 

For projects facing too many difficulties in the implementation process, having incompetent contractors, or facing slow implementation and lack of guidance from the relevant agencies, the Steering Committee will make a list to expedite. This will be the measures to enhance the sense of responsibility of the governing body, as well as investors.

 

On the issue of slow progress due to the clearance problems, especially for projects in the area of Hanoi, Deputy Prime Minister Hoang Trung Hai asked the Hanoi People's Committee to focus review and submit reports to the Prime Minister in order to find appropriate solutions.

 

In order to create favourable conditions for projects to be implemented, and such cases occurred in many projects, Deputy Prime Minister has given a number of suggestions to prioritise funding for projects, which will promote projects to be implemented on schedule and help create trust from investors.