As of end-June, the Hanoi city government has disbursed VND1.55 trillion (US$66.35 million) worth of official development assistance (ODA) loans, meeting 29.7% of the year's target, according to the city's deputy mayor Nguyen Doan Toan.
|Vice Chairman of the Hanoi People's Committee Nguyen Doan Toan.|
In 2020, the government allowed Hanoi to disburse VND40.67 trillion (US$1.74 billion) for capital expenditure, of which VND3.29 trillion (US$140.82 million) came from ODA loans, Toan informed a conference on June 25.
In May, Hanoi adjusted the investment plan and revised the capital expenditure target to VND44.91 trillion (US$1.92 billion). Of the amount, the city disbursed VND8.12 trillion (US$347.52 million) in the first five months, or 18.1% of the total.
To speed up disbursement of public investment funds, including ODA, Hanoi has been implementing a number of measures since the beginning of the year, including a review of the existing legislation, specifying responsibilities of local agencies, among others, Toan said.
Toan, however, points out some difficulties in implementing a number of ODA-funded projects, such as the Nam Thang Long–Tran Hung Dao section of urban railway line No.2, which requires additional capital, and the unfinished planning of underground station C9 near Hoan Kiem Lake.
Additionally, the Nhon – Hanoi Station section of this urban railway project faces obstacle in advanced payment procedures for package No.9, Toan said, attributing the issue to the ongoing negotiations on an additional loan of EUR20 million (US$22.44 million) from the French government.
Public investment is considered Hanoi’s top priority to ensure economic recovery in the post Covid-19 pandemic.
Hanoi's Party chief Vuong Dinh Hue suggested that the city should set up a tasks force with the aim of speeding up the disbursement progress, and each process must be tied to individuals' responsibility.