Finance Ministry warns of sluggish ODA disbursement

Illustrative photo (Source: VOV)

The concern was raised at a teleconference held by the Ministry of Finance (MoF) on June 26 to seek ways of quickening the disbursement of official development assistance (ODA) and preferential loans for 2019.

According to the MoF, the disbursement of ODA and preferential loans has failed to achieve the yearly figures since 2016.

In light of the national medium-term public investment scheme set for the 2016-20 period, ODA and preferential loans were adjusted by the National Assembly to VND360 trillion (US$15.48 billion).

However, the disbursement of such capital sources aggregated to only VND133 trillion (US$5.71 billion) between 2016 and May 2019, equivalent to 54.5 per cent of the figure planned for the 2016-19 period, and 37 per cent of the 2016-20 target.

Truong Hung Long, head of the MoF Department of Debt Management and External Finance, said that in the face of sluggish disbursement, the MoF, following the National Assembly’s approval given to the revised Law on Public Investment, should suggest that the Government assign the Ministry of Planning and Investment (MPI) to collaborate with relevant ministries and agencies to set forth a new decree aimed at easing difficulties in ODA and preferential loan management.

Long added that the MPI should work together with relevant ministries and localities to review the implementation of the medium-term public investment plan outlined for 2020, and then take prompt actions to adjust and reallocate capital for projects under capital shortages.

Such collaboration is urged to fulfill the targeted figures assigned by the National Assembly and the Prime Minister for the 2016-20 scheme.

The MoF recommended that Prime Minister Nguyen Xuan Phuc issue a directive aimed at speeding up the disbursement pace of ODA and preferential loans for the remaining half of 2019, he noted.