Disbursement of ODA, preferential loans reviewed

Wednesday, 2016-06-08 17:52:57
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Deputy Prime Minister Pham Binh Minh chaired the meeting in Hanoi on June 8. (Credit: VGP)
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NDO – Deputy Prime Minister Pham Binh Minh chaired a meeting in Hanoi on June 8 to review the implementation and disbursement of official development assistance (ODA) and preferential loans in the first half of the year.

According to a report by the Ministry of Planning and Investment (MPI), the signed capital over the first half of the year reached approximately US$2,564 million, a 61% year-on-year rise. Meanwhile, the total disbursed capital was around US$1,850 million, including US$1,750 million of ODA and US$100 million non-refundable ODA, an approximately 4% year-on-year fall.

Reasons for the sluggish disbursement and implementation remain in institutional and legal hindrances, professional standards, adjustments in projects’ implementation, differences in procedures between Vietnam and donors, as well as difficulties in site clearance. Notably, the disbursement is not allowed to surpass the adopted State budget plan for 2016.

Concluding the meeting, Deputy PM Minh asked the National Steering Committee on ODA and Preferential Loans to implement effective regulations on related issues while requesting the MPI facilitate prioritised projects with improved procedures.

The MPI and the Ministry of Finance (MOF) were required to collect suggestions of development banks, the State Bank of Vietnam (SBV) and localities on relending the capital via financial institutions, while completing legal documents to ensure development in each locality and balance the local budget.

Regarding the capital mobilisation, Deputy PM Minh assigned the SBV, MPI, MOF and the Ministry of Foreign Affairs to devise an appropriate roadmap when the ODA and preferential loans are changed into less preferential capital to ensure effective implementation of ODA projects.

He asked the MPI to work with the MOF to report to the Government and the National Assembly Standing Committee on overpassed disbursements in accordance with donors’ funding.

Deputy PM Minh stressed that management boards of projects using ODA and preferential loans should exchange experience, especially those with strong performance in energy and transportation, to learn lessons on lifting difficulties in the implementation.

VNA - Translated by NDO