Mekong Delta to get US$2.5 billion in ODA loans for infrastructure projects

The capital will be sourced from ODA packages committed by six development partners for Vietnam, said Chinh at a conference held in Can Tho City on July 8 to tackle difficulties for highway projects and ODA capital disbursement in the Mekong Delta.

He reaffirmed that the Mekong Delta is an especially important strategic region and the greatest agricultural hub of the country. The Party and State have therefore introduced many policies and measures to make development breakthroughs in the region.

One of those measures is to pour investment in infrastructure construction, A series of highway projects were launched in the delta recently, aiming to increase the total length of highways in the region to 554km in 2026.

However, those projects are facing obstacles related to land acquisition, a shortage of materials for roads’ foundation, project management, capability of contractors and consultants, as well as complex construction conditions.

The average disbursement rate of ODA projects in the region in the first six months of this year is only 5.3%, much lower than the national rate of 15.7%. The region now has 62 projects using ODA and foreign loans worth US$2.8 billion.

The PM asked relevant ministries in charge of planning and investment, finance, construction, natural resources and environment, transport and regional localities to iron out the snag to ensure the approved projects are completed on time.

He assigned Deputy Prime Minister Tran Hong Ha to continue drastically directing, inspecting, and handling the shortage of materials for key projects.

He particularly reminded the local administrations to pay attention to ensuring housing and livelihoods for people who have to relocate to make way for the highway projects.