Efforts made to accelerate ODA disbursement

According to the National Steering Committee for ODA and preferential loans, despite positive mobilisation, implementation and disbursement of ODA and preferential loans, contracting and disbursement have not yet reached the set requirements.

During the Jan-June period, total ODA capital and preferential loans signed reached more than US$1.59 billion, or 70.54% over the same period in 2014. There are 23 programmes and projects using ODA and preferential loans under the behind-schedule list in 2015 to be reviewed and evaluated, of which ten out of the 23 projects have solved difficulties related to site clearance and lack of counterpart funds and ODA.

The causes of delays to implementation and disbursement come mostly from problems in the institutional and legal system; specialised rules, regulations, and standards; adjustments and changes arising from the project implementation process; differences in processes and procedures between Vietnam and donors; lack of counterpart funds; and slow land clearance.

According to the Ministry of Planning and Investment, the largest obstacles to the disbursement of ODA and preferential loans are a resolution on the State budget by the National Assembly in 2015 not allowing the disbursement level to exceed the set plan. The above problem was resolved in May 2015 after a directive of the Prime Minister, and the disbursement of ODA and preferential loans in the first half of 2015 have improved to some extent.

Reviews from relevant ministries and authorities showed that ODA and concessional loan disbursement are also not uniform across sectors and among localities. The projects in such areas as transportation, electricity, and urban development have a higher disbursement rate compared with others such as healthcare, education and training, information and communications, labour, invalids and social affairs. Disbursement in major cities like Hanoi and Ho Chi Minh City is at a higher level than other regions across the country.

In the context of progressing towards becoming a middle-income country, the attraction of ODA and preferential loans will become increasingly difficult for Vietnam. Therefore, effective disbursement and use of such funds is a core task for each ministry and locality. Those recording low rates of ODA disbursement should be more active to maximise leverage and efficiency of such increasingly difficult to approach funds.

Concerned ministries, branches and localities need to focus on selecting priority projects and improving the quality of project documents to ensure committed progress and effectiveness of the investment, paying attention to removing difficulties related to land clearance. Relevant agencies should also strengthen co-ordination in mobilising and preparing for new projects. The Ministry of Planning and Investment should continue to work closely with other ministries and agencies to review each delayed project.

It is also important to strengthen inspection and supervision over the project implementation using ODA, while prioritising allocation of reciprocal capital for urgent projects and avoiding losses to ensure project effectiveness and quality.

During a recent meeting of the Steering Committee, Deputy Prime Minister Hoang Trung Hai, who is also Head of the Steering Committee, also urged facilitating land clearance and allocating counterpart funds, in line with initiatives, policies, and mechanisms to make breakthroughs in the mobilisation and use of ODA and preferential loans.

(Source: Nhandan Online)