On the morning of June 26, the Ministry of Finance organized an online conference on "Promoting disbursement of ODA foreign preferential loans in 2019". Attending the conference were [...]
On the morning of June 26, the Ministry of Finance organized an online conference on "Promoting disbursement of ODA foreign preferential loans in 2019". Attending the conference were leaders of Central Ministries, leaders of People's Committees of provinces and centrally-run cities, and Project Management Boards using ODA capital and preferential loans from the Central Government and provinces and cities. At the Hai Phong city bridge, Vice Chairman of the City People's Committee Nguyen Van Thanh attended and chaired the conference.
At the conference, Minister of Finance Dinh Tien Dung cited data showing that disbursement of ODA capital and preferential loans from 2016 up to now has not met estimates. According to the medium-term public investment capital plan for the period 2016-2020, ODA loans and foreign preferential loans adjusted according to the National Assembly's resolution are 360,000 billion VND. By the end of 2019, the total amount delivered was VND 244,300 billion. However, the disbursed and accumulated amount from 2016 to May 2019 is just over 133,000 billion VND, only reaching approximately 37% of the adjusted plan.
To provide practical and effective solutions and speed up disbursement progress, Minister Dinh Tien Dung requested ministries, central branches, provinces, cities, representatives of governing agencies, project owners, and donors to focus on discussing and clarifying the causes directly affecting the slow disbursement in recent times.
According to the assessment of the Ministry of Finance, the main causes are: First, groups of legal causes include the State Budget Law, the Law on Public Debt Management, and the Law on Public Investment. The second group of causes related to capital planning includes slow progress of capital plan delivery, slow and untimely adjustment of estimates, causing projects to be implemented on schedule but not disbursed. The third group of investment issues is the process and procedures for project adjustment, site clearance, large capital allocation, contractor capacity, project management board capacity...
To propose solutions to speed up disbursement progress, Minister Dinh Tien Dung said that delegates all agreed that accelerating the disbursement progress of projects cannot be done without the cooperation of project owners, governing agencies of ministries and management branches such as the Ministry of Finance, Ministry of Planning and Investment as well as donors.
Through the conference, the Ministry of Finance hopes to listen to the opinions and comments of the delegates so that the Ministry of Finance can immediately resolve problems within the Ministry's responsibility, and will coordinate with sectors, levels, investors, project management boards, and sponsors to remove difficulties within their jurisdiction or submit issues within their authority to competent levels, contributing to faster and more convenient disbursement for loan projects. ODA and foreign preferential loans.
According to the report of the Department of Finance of Hai Phong city, in 2018, the total ODA loan was 1,514,925 million VND; Arranged for projects: Rainwater drainage, wastewater and solid waste management in Hai Phon phase 1; Developing urban traffic in Hai Phong city; Strengthening land management and land database; Waste treatment system of general hospitals in Hai Phong city; Providing medical equipment for the Obstetrics Hospital. The disbursed capital is 946,578 million VND, reaching 62.5% of the assigned plan; of which loan capital reached 47.3%, capital allocated by the Central Budget reached 90.5%; The remaining undisbursed capital is 568,374 million VND, equivalent to 37.5% of the assigned plan.
In 2019, the total ODA loan capital assigned by the Prime Minister was 216,211 million VND; arranged for three projects: Rainwater drainage, wastewater and solid waste management in Hai Phong phase 1; Developing urban traffic in Hai Phong city; Strengthen land management and land database. The amount of disbursed capital is 199,680 million VND, reaching 92.4% of the assigned plan, of which loan capital reached 84%, capital allocated by the Central Budget reached 96%. Remaining undisbursed capital: 16,531 million VND, equivalent to 7.6% of the assigned plan.
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