Disbursement Of ODA Loans Is Slow Because Of Difficulties In Site Clearance

Due to the difficulty of site clearance and relocation of some utility projects, the speed of disbursement of projects was only about 50%.

HCMC People’s Committee has reported to the Office of Government and other ministries on the situation of receiving and using ODA and preferential loans in the second quarter of 2015.

Accordingly, HCMC is monitoring 15 projects with ODA capital with total investment capital of nearly VND110,000 billion. However, in the first 6 months of 2015, ODA disbursement of projects was still slow, reaching only 44% of the planned capital. Specifically, the infrastructure sector reached 43.5%, the sector reached 58.3%.

The reason is that the speed of disbursement is low due to the compensation of land clearance, relocation of utility works are difficult. The construction of some packages is difficult due to the division of traffic, construction in narrow areas and the handling of underground works. In addition, some projects have to adjust the design to suit the situation as well as handle some situations in the bidding.

DOA Vietnam

Ben Thanh – Suoi Tien new metro project disbursed 49%

For example, the Ho Chi Minh City Water Environment Improvement Project in the Can Huu – Ben Nghe – Song Doi – Te 2 canal was disbursed with 10% ODA compared to the signed loan agreement.

The project of urban railway No.1 from Ben Thanh to Suoi Tien disbursed 49%. Project No.2 Ben Thanh – Tham Luong disbursed 6%. Meanwhile, Ho Chi Minh City Urban Upgrading Project disbursed 97.3%.

In order to speed up the disbursement of ODA capital, the HCM City People’s Committee will develop a detailed implementation plan for each major item of the project and coordination mechanism among the concerned units, and clearance. To direct the project owners and ODA project management units to study and promulgate internal regulations on measures to prevent and combat corruption.

HCMC People’s Committee also proposed the Ministry of Planning and Investment to strengthen the training of regulations on ODA management, especially the new regulations such as the Law on Public Investment, the Law on Construction, the Law on Procurement. To study and submit to the Government for promulgation a Decree replacing Decree No. 38/2013 / ND-CP on the management and use of official development assistance and preferential loans from donors. in line with the Public Investment Law.

DOA Vietnam

Project No.2 Ben Thanh – Tham Luong disbursed 6%.

Ho Chi Minh City also suggested the Government continue to support the city in mobilizing ODA to finance priority projects in the field of infrastructure development, transportation and environment with the large scale such as projects investment in the construction of an urban railway, Ben Thanh Central Station, wastewater treatment plant and flood risk management project.

To continue taking the prime responsibility for, and coordinate with the concerned ministries and branches in, adjusting the regulations in order to harmonize the procedures between Vietnam’s regulations and the donors’ policies.

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