Request to accelerate the implementation and disbursement of ODA

DNHN - On April 8, Permanent Deputy Prime Minister Pham Binh Minh signed Official Dispatch No. 307/CD-TTG of the Prime Minister requesting ministries, branches and localities to speed up the implementation and disbursement of ODA.

Over the past time, the Government and the Prime Minister have taken many drastic and specific measures to accelerate the disbursement of ODA in 2022 and the following years. 

However, ODA disbursement in 2022 remains delayed and unimproved, lowering the efficiency of public investment capital, reducing the attraction of other social resources, wasting resources, and impeding the recovery momentum. economic recovery following the Covid-19 epidemic. According to the Ministry of Finance's report, ODA expenditures from the central budget till March 31, 2022, totalled 0.99 per cent of the Prime Minister's plan. 

The sluggish disbursement of ODA is due to a variety of factors, including the impact of the Covid-19 pandemic, inflationary pressure, and an increase in the price of commodities, such as iron and steel, sand, stone, and cement, which slowed construction progress. Projects funded under ODA are being delayed.  

However, subjective reasons continue to be the primary reasons, including the following: some ministries, branches, and localities lack political determination; the role of the leader has not been fully promoted; leadership work and command are not sufficiently drastic; and coordination among ministries, central and local agencies, and donors continue to be lacking. 

Additionally, several other factors might be identified, such as the project's lack of preparation, the compensation and site clearance work encountering challenges and impediments as a result of domestic procedure harmonization. While donor policies, as well as legal and regulatory frameworks governing ODA, remain complicated.

for the implementation and disbursement of ODA to improve the efficiency of use and make an important contribution to economic recovery and development, striving for the rate of ODA disbursement in 2022 to reach 100% of the plan, The Prime Minister requested the ministries, central agencies and localities to continue strictly grasping the Resolutions of the Party, National Assembly and the Government and directing the Prime Minister on accelerating disbursement of public investment capital in general. ODA capital in particular. 

The Prime Minister requested that ministries, branches, and local governments prioritize the task of disbursing ODA as a critical political objective for 2022 and subsequent years. Strengthening discipline and discipline in ODA disbursement, emphasizing the head's role and responsibilities, examining capital allocation to projects in relatiaboutecution schedule and disbursement capability, and assuring emphasis, focus, not spread, fragmented or extended. 

Along with that, Implement drastically and synchronously the goals, tasks and solutions set out in the Government's Resolution No. 01/NQ-CP dated January 1, 2022, on the main tasks and solutions to be implemented. Socio-economic development plan and state budget estimate in 2022; Resolutions of the Government's regular meeting, Official Dispatch No. 126/CD-TTG dated February 12, 2022, of the Prime Minister on urging the drastic and effective implementation of the Economic Recovery and Development Program - society, speeding up the disbursement of public investment capital; directives of the Government leaders in documents No. 904/VPCP-QHQT dated April 1, 2022, 1993/VPCP-KTTH dated March 31, 2022, 1721 /VPCP-QHQT dated March 19, 2022, 1684/VPCP-KTTH dated March 17, 2022, and 1173/VPCP-QHQT dated February 24, 2022, of the Office of the Government. 

The Prime Minister urged ministries, agencies, and local governments that have a history of sluggish disbursement to heed lessons learned, define duties, and, on that basis, offer appropriate allocation and disbursement solutions in the coming years. Simultaneously, review, correct, and have solutions in place to swiftly address difficulties, obstacles, and bottlenecks and accelerate ODA disbursement while ensuring the quality of works and the efficiency of ODA use, combating waste, loss, and corruption; accept responsibility before the Government and Prime Minister if ODA disbursement is delayed in 2022. 

Additionally, ministries and local branches must coordinate with foreign donors and ministries and localities to develop detailed disbursement plans for each ODA project, particularly large capital projects; assign leaders directly to each project; and hold periodic meetings with relevant agencies and units to quickly identify and resolve disbursement difficulties and obstacles. 

Along with that, focus on speeding up the site clearance, construction progress, removing difficulties and obstacles related to land and resourcecarryingrry out the pre-acceptance test, making payment as soon as the volume is available, proactively transferring capital plans between slow-disbursed ODA projects to ODA projects with good disbursement progress, lacking capital, and prioritize allocating sufficient capital for Agreements ending in 2022, 2023... 

In case of any difficulties or problems, send them to the Ministry of Planning and Investment and the Ministry of Finance to summarize and report to the Government and the Prime Minister for consideration and settlement according to regulations. authorization.

The Prime Minister assigned the Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with the Ministry of Finance in, summarizing and submitting to the competent authorities the transfer of capital for the 2022 public investment plan of ministries, central agencies and locally with instructions of the Prime Minister in Document No. 1993/VPCP-KTTH dated March 31, 2022, of the Office of the Government. 

The Ministry also assumes the prime responsibility for, and coordinates with the Ministry of Finance and other ministries, branches and localities in, summarizing and supplementing the medium-term public investment plan with foreign capital for the period 2021 - 2025 and 2022 for existing ODA projects meeting the conditions, report to the Government and submit it to the National Assembly Standing Committee. 

The Ministry of Planning and Investment shall urgently submit to the Government before April 15, 202,2 the Decree amending Decree No. 114/2021/ND-CP dated December 16, 2021, on the management and use of ODA and loans. incentives of foreign sponsors. In particular, regulations on simplifying processes and procedures to immediately remove difficulties and obstacles in the disbursement of ODA and concessional loans of foreign donors; strengthen decentralization in the management and use of ODA in association with the responsibilities of all levels and units using ODA capital. 

The Prime Minister assigned the Ministry of Finance to direct functional units to ensure payment sources for projereviewewing regulations to further simplify procedures, shorten spending control time, withdraw capital from donors, and ensure compliance with regulations.

The Ministry also coordinated with relevant agencies and units to promptly handle problems related to payment and settlement; coordinate with foreign donors and related agencies and governing agencies to speed up the negotiation and signing of Agreements, project implementation and disbursement and capital withdrawal from donors.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and ministries, branches and localities in, summarizing and evaluating Directive No. 18/CT-TTG dated June 29, 2019, of the Prime Minister; propose necessary solutions to remove obstacles in the process of implementing and adjusting ODA projects and foreign preferential loans by the direction of the Prime Minister in Document No. 1721/VPCP-QHQT March 19, 2022, of the Office of the Government.

 PV