Promoting ODA Capital Disbursement (17/02)
17/02/2012 - 20 Lượt xem
Reasons for the slow ODA capital disbursement
According to statistics from the Ministry of Planning and Investment (MPI), since 2006, ODA capital disbursement growth has increased annually. However, the amount of ODA capital disbursed remained modest as compared with total ODA capital agreed by donors.. (see the graph)
By the end of 2011, the amount
of ODA capital disbursed for Vietnam was valued at more than US$33
billion, accounting for 61 percent of total agreed ODA capital, leaving
US$20 billion yet to be disbursed.
Director General of Department of Foreign Economic Relations at the Ministry of Planning and Investment, Hoang Viet Khang said the outstanding US$20 billion figure would mean Vietnam would have to pay commitment fees, leading to big losses to the Vietnam economy.
As part of a project to attract and manage ODA capital and other preferential loans during the 2011-2015 period that was submitted to the Prime Minister, the MPI pointed out the limitations in attracting and using ODA capital as well as reasons for the slow rate of disbursement. The main reasons for slow implementation of ODA projects were unsuitable or low quality documents relating to the projects. In addition, the reciprocal sources were not corresponding to the donor's ODA capital investment as many social organizations and experts had not participated in the ODA
capital disbursement, which had led to a slow and inefficient rate of
ODA capital disbursements to many programs and projects.
Promoting ODA capital disbursement
Being aware of the negative impact that slow ODA capital disbursement could have, just before the Consultative Group (CG) meeting of donors held in Hanoi last December, the Government urged the Ministry of Finance, MPI and related agencies to propose financial mechanisms to help boost the ODA disbursement process.
In 2012 January, the Vietnamese Prime Minister also signed a decision to approve the project intended to increase the efficiency of ODA use. Under the project, Vietnam is expected to disburse from 14 to 16 billion US dollars in ODA capital during the 2011-2015 period.
In a recent statement, Minister of Planning and Investment Bui Quang Vinh said that 2012 had been chosen as the year for ODA capital disbursement, with the released level of ODA set to top last year's figure of US$ 3.650 billion./.
Source: VEN
Source: VEN
