31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Hanoinews
Hanoi pushes disbursement of ODA projects
Ngoc Mai 15:10, 2021/06/17
The Covid-19 pandemic was among main reasons causing a stagnation in the construction progress.

Hanoi’s authorities have urged relevant agencies to push the disbursement of official development assistance (ODA) funding for projects in the capital city.

Vice Chairman of the Hanoi People’s Committee Ha Minh Hai made the statement in referrence to the national low disbursement rate of 1.73% of the plan in the first five months.

 Hanoi's urban railway project, section Nhon - Hanoi station. Photo: Pham Hung

Hai said this year Hanoi was allocated VND7.84 trillion (US$338 million) from the ODA funds for seven projects, but as of May, the disbursed amount stood at VND551 billion (US$23.78 million), or 7.03% of the plan.

“The Covid-19 pandemic was among main reasons causing a stagnation in the construction progress, as foreign experts could not re-enter Vietnam, or delay in the delivery of construction equipment from abroad, including powered vehicles for the urban railway project No.3 and machinery for Yen Xa wastewater treatment plant from Japan and Europe,” said Hai.

Hai also referred to the complicated process of adjusting construction schedule and costs for projects that are in delay, mainly due to the slow site clearance process and incompatibility between Vietnam’s regulations and international practices that could lead to possible disputes with foreign contractors.

“These issues are found in a number of projects, such as railway project No.2 with an ongoing modification of the planning for the underground station (Terminal C9) by Hoan Kiem Lake, and the project restructuring of the urban railway project No.3,” Hai added.

To further accelerate the disbursement of ODA funds, Hai suggested the Ministry of Planning and Investment (MPI) should soon issue an instruction on revising the plan for the use of ODA funds, as well as expeditiously contributing to the modification of financing agreements with donors from the Ministry of Finance and other agencies.

Minister of Finance Tran Xuan Ha in a meeting on June 14 said the disbursement rate of ODA funds in the first five months of this year [1.73%] was significantly lower than the 7.19% rate recorded in the same period of last year.

According to Ha, only 15 out of 63 provinces/cities having a rate above 3%, and 37 with 0% rate.

While complicated procedures related to ODA projects were seen as a key reason for such a low rate, Ha urged related authorities to continue to cooperate to address bottlenecks in these projects from now on until the end of the year.

RELATED NEWS
TAG: Vietnam Hanoi ODA disbursement public funds urban railway projects
Other news
21:08, 2023/08/27
Prime Minister praises Ring Road 4 project's land clearance
Prime Minister Pham Minh Chinh asked the ministries to quickly resolve the relevant issues to keep the ring road project moving forward as planned.
13:48, 2023/48/26
Hanoi eyes higher transport infrastructure capabilities
These projects would improve Hanoi’s public transport infrastructure system and create the driving force for socio-economic growth.
13:42, 2023/42/26
Hanoi marks 234th anniversary of Ngoc Hoi - Dong Da victory
The victory has gone down in Vietnamese history as an immortal and epic struggle for national sovereignty, construction, and defense.
13:37, 2023/37/26
Hanoi maintains its leading position in building new-style rural areas
The movement of building advanced rural areas has contributed to turning Hanoi's suburbs into rural areas worthy of living in.
20:00, 2023/00/25
Warm shelter for the homeless in Hanoi
Thirty-nine homeless people enjoyed their Tet at the Hanoi Center for Social Affairs and Children Protection.
08:39, 2023/39/25
Hanoi set to make breakthroughs in transport infrastructure development in 2023
Local authorities have shown a strong determination to remove bottlenecks causing years-long delays in large transportation projects.