The Ministry of Planning and Investment (MPI) has submitted to the government the draft amended decree on ODA management and usage, which, according to Minister Vo Hong Phuc, will help prevent loss and waste.

Decentralised administration of ODA was performed already but when the PMU18 scandal occurred, nobody took responsibility. What is the difference this time? 

There was exactly only the division of responsibility in ODA management and usage, not the true decentralized administration of ODA in the previous period.

That’s why, with the learning experience from the PMU18 case, the MPI and state agencies in charge of ODA management have checked the procedures to deal with overlapping and gaps in management, at the same time strengthening decentralization and responsibility of ministries and sectors in ODA management and use. 

According to the new draft decree, the decentralization of ODA management for ministries, sectors and provinces will be strongly carried out, without distinction of projects for A, B or C groups. This decentralization is closely linked with division of responsibility in ODA management and usage, in which nobody can pass the buck to somebody or just take general responsibility.

This is the point that Prime Minister Nguyen Tan Dung emphasized when assigning us to compile this decree. 

How will the responsibility of investors and project management units (PMUs) be affected?

Their responsibility will be very clear. Previously, projects of the A group must be approved by the Prime Minister but in the new decree, they will be assessed, approved and implemented by ministries, sectors, and provincial and municipal People’s Committees.

The government will only consider national projects in cases that the National Assembly decides the investment policy. And those who approve projects will take whole responsibility for the projects as well.

Project management has long been a weak point in ODA management and usage. What can ensure that this decentralization will help deal with that weakness? 

The government has issued Decree 112 with supplementary regulations on project management. Accordingly, in cases where investors directly manage the projects, they have to establish PMUs, the agency that will help investors to implement the projects. In necessary cases, PMUs can hire management consultants or supervisors.

In the second case, investors can hire project management consultants. However, the investors must closely follow activities of the consultants. The investors must take responsibility from the preparation phase until the work is put into operation. 

The key point is that the management board will be set up by the investors. This is the difference from the current way of management when PMUs are established by governing ministries and sectors.

What is the role of the MPI in ODA using? 

The MPI will only focus on two major tasks: managing the first and the final stages of each ODA project. Based on the strategy, planning and social and economic development plans of the government, sectors, provinces and selection standards, the ministry will develop the list of projects calling for ODA to submit to the government for approval. The ministry will perform state management functions over ODA, specifically monitoring project implementation, post-inspection and evaluation of ODA projects.

A report on the investment situation and investment management said that ministries and sectors often don’t obey rules on reporting project implementation. The MPI now withdraws from the project implementation process so will it will be able to perform supervision tasks? 

Focusing on two major tasks will help the MPI to perform supervision task more effectively because it will not have to do other specific jobs. 

The ministry will further concentrate in checking and urging ministries, sectors and provinces to strictly conform to the rules on reporting about ODA projects. If the MPI sees any problem, it will immediately inspect the problematic projects. 

With those changes, do you think that the use and management of ODA capital will be implemented seriously and strictly, as stated in the commitment made by Prime Minister Nguyen Tan Dung in the recent visit to Japan?

I think it is completely feasible, especially when we have learnt noteworthy lessons from PMU18.

Source: Tuoi Tre