Promote disbursement of ODA capital and preferential loans

Speaking at the Conference, Deputy Prime Minister Pham Binh Minh, Head of the Steering Committee, affirmed that to achieve socio-economic development goals, the effective use of financial resources, including ODA capital and concessional loans, is very important, especially in the context of Vietnam's limited resources.

"Although there have been many changes, the progress of disbursement of ODA and concessional loans in Vietnam is still slow and has not met common expectations. Therefore, the parties need to continue to discuss and clearly identify difficulties and obstacles to find solutions to promote disbursement of this capital source," Deputy Prime Minister Pham Binh Minh said.

Meanwhile, according to Deputy Minister of Planning and Investment Nguyen The Phuong, the total ODA capital and concessional loans signed in the first 9 months of the year reached over 4.9 billion USD, 1.8 times higher than the same period last year. This surge is due to the fact that some Japanese ODA amounts expected to be signed in Japan's 2015 fiscal year are slower than expected and delayed to fiscal 2016.

Signed capital increased sharply, however, total ODA capital and preferential loans disbursed in the first 9 months of this year was only estimated at 2.685 billion USD, equal to 81.4% of the disbursement level of the same period last year.

In particular, disbursement of 6 development banks in the past 9 months is estimated at 1.259 billion USD for JICA, 691 million USD for WB, 639 million USD for ADB, 75 million USD for KEXIM, 18 million USD for AfD and 78.54 million USD for KfW.

"In general, the disbursement level of ODA capital and concessional loans in the first 9 months of the year is not uniform among ministries, branches and localities. Many projects have low disbursement levels, and have not even been disbursed as planned for 2016", Deputy Minister Nguyen The Phuong assessed and said that the disbursement level of ODA capital and loan capital is favorable. Incentives in 2016 will be difficult to reach the level of 4.65 billion USD in 2015.

This reality makes the Ministry of Planning and Investment believe that it is necessary to continue implementing solutions to further promote the disbursement progress of ODA and preferential loans.

Speaking at the Conference, Mr. Ousmane Dione, Country Director of the World Bank in Vietnam, affirmed that he was very pleased that Vietnam had actively coordinated with 6 development banks to resolve problems to promote disbursement and more effective use of ODA and concessional loans.

"Vietnam and the group of 6 development banks need to continue to find new directions of operation, to ensure more effective use of ODA capital, and solve problems related to slow project preparation, slow start of construction, slow disbursement of capital...", Mr. Ousmane Dione emphasized.