Reality from Quang Nam
Based on the 2024 capital plan assigned by the Prime Minister, the People's Committee of Quang Nam province allocated a capital plan for 2024 for projects using foreign capital (ODA projects) of more than VND 1,096 billion. As of November 27, 2024, more than VND 496.7 billion (45%) had been disbursed.
According to Mr. Nguyen Hung - Deputy Director of the Department of Planning and Investment, Quang Nam has encountered many difficulties and obstacles leading to slow and prolonged progress in implementing ODA projects, and disbursement not meeting requirements. That is, the process of implementing investment procedures (through bidding documents for design consultancy and construction drawings; bidding documents for construction and installation; results of selecting construction contractors...) takes a lot of time.
The reason for waiting for the donor’s no objection opinion is that the implementation progress of the activities is longer than initially planned. In particular, international bidding requires a long time, from the issuance of the invitation to express interest to the completion of contractor selection, the minimum time is 20 weeks.
Many projects are stuck in compensation and site clearance. In addition, the fluctuating market prices of construction materials have led to slow construction progress.
Mr. Nguyen Hung said that according to Clause 2, Article 52 of the Law on Public Investment, the time for arranging capital to implement group A projects is no more than 6 years, group B is no more than 4 years, and group C is no more than 3 years.
However, the ODA project procedures are not really harmonious, the disbursement process is complicated, so the implementation time of some ODA projects is often longer than domestic projects. Therefore, Quang Nam proposed that the Central Government adjust the capital allocation time appropriately for projects using ODA capital.
Mr. Hung also recommended that donors shorten the time to review related documents such as negotiating and signing agreements; no objections to bidding results, and extending implementation time...
That helps localities and investors promptly carry out the next procedures to ensure speeding up the implementation progress and disbursement of capital plans for projects using ODA capital and preferential loans from foreign donors.
The Central Government also needs to guide the procedures for registration and disbursement of non-refundable aid capital plans for projects to build climate-resilient infrastructure for ethnic minorities, and projects to prevent erosion and sustainably protect the Hoi An coast.
Solutions from the Central Government
Recently, the Ministry of Finance held an online conference with provinces and cities nationwide on disbursement of public investment capital for ODA projects.
Mr. Hoang Hai - Deputy Director of the Department of Debt Management and External Finance (Ministry of Finance) said that public investment from foreign capital sources is identified by the Government as one of the important resources for economic development. The year 2024 is very important in implementing the socio-economic development plan goals for the period 2021 - 2025.
Accelerating the disbursement of public investment capital for ODA projects is also a way to promote infrastructure development, support economic growth, improve people's lives, and contribute to rapid and sustainable growth.
Recently, the Government has issued a series of directives to promote the progress of disbursement of public investment from foreign capital. However, the results so far have not met expectations.
According to Mr. Hai, the main reason for the slow disbursement of ODA investment capital in the country is due to the passive capital plan, so the construction and implementation of investment are not close. Some projects have to be changed or extended, but the adjustment and addition of investment policies are slow, causing the disbursement progress to be slow.
The leaders of the Ministry of Finance said that it is very difficult to achieve the disbursement rate of 95% of the capital plan assigned in 2024 for ODA loans and foreign preferential loans as directed by the Prime Minister, because there is not much time left from now until the end of the year.
The Ministry of Finance will continue to minimize the time for processing withdrawal applications. At the same time, it will work directly with project management boards and localities to promptly resolve difficulties and obstacles in disbursement. Continue to discuss with donors to resolve obstacles on the donor side such as shortening the time and simplifying procedures for giving non-objection opinions.
The Ministry of Finance requests the Ministry of Planning and Investment to support localities in speeding up the progress and procedures in extending the capital allocation period to avoid affecting the disbursement progress of ODA projects. Quickly carry out procedures to supplement the medium-term capital plan and the capital allocation plan for localities to complete the procedures and meet the conditions for additional capital allocation. The Ministry of Finance will fully synthesize the recommendations from ministries, branches and localities to report to the Government to seek solutions to thoroughly remove obstacles in the disbursement of investment capital for ODA projects.
In 2024, the Central Government assigned localities a total foreign loan plan of more than VND 24,805 billion. The capital plan assigned to localities in 2024 is much lower than in 2023 (only 70% of the capital plan in 2023), correspondingly the number of projects assigned capital plans in 2024 is only 58.3% of 2023 (98/168 projects). As of November 30, the disbursement rate of public investment capital from foreign loans (including capital allocated by the Central Government and local capital borrowed) has only reached 30.3%.
Source: https://baoquangnam.vn/kho-giai-ngan-von-du-an-oda-3145389.html
Comment (0)