Deputy PM chairs meeting on ODA and preferential loans use

09:57 | 28/04/2017 Finance - Banking

Deputy Prime Minister and Foreign Minister, Pham Binh Minh, chaired a meeting with ministries and sectors to review, remove difficulties and accelerate the projects funded by official development assistance (ODA) and preferential loans on April 26.

At the meeting (Credit: VGP)

As reported, Vietnam signed a total of US$700 million worth of ODA and preferential loans in the first four months of 2017, with an estimated US$410 having already been disbursed as of April 24.

Particularly, 2017 is the last year that Vietnam will receive preferential loans from the World Bank (WB)’s International Development Association (IDA). The WB has pledged loans worth US$2.1 billion to 14 projects and programmes in Vietnam. After July 1, the country can only access less preferential loans from this organisation.

However, disbursement speed has been inconsistent between managing agencies, while it will be difficult for a number of projects to have their goals completed if the disbursement deadlines are not extended.

Addressing the meeting, Deputy PM Minh, who is also head of the National Steering Committee for ODA and Preferential Loans, highlighted the significance of the WB’s remaining preferential loans in the fiscal year 2017, as capital mobilisation for development investment is still confronted with numerous difficulties.

This year’s preferential loans will be used to finance urgent projects in the fields of sustainable development, infrastructure, improvement of tertiary education, and disaster recovery in the central region, Minh said.

He noted that the spirit of the government will be to resolutely transfer loans from slowly-disbursed projects to fast-progressing ones, aiming to make optimal use of these preferential loans.

The deputy PM asked agencies to work closely with the State Bank to finalise preparations for projects for submission to authorities for approval, ensuring that negotiations with the WB are on schedule.

Theo NDO