Provincial Party Secretary: A change in mindset and perception regarding ODA projects is needed.

On the morning of March 29th, the Monitoring Delegation of the National Assembly of the province held a working session with the Provincial People's Committee regarding the implementation and use of foreign loan capital (ODA) during the period 2011-2016.

Attending the working session were: Nguyen Dac Vinh - Member of the Central Committee of the Party, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly Delegation; Nguyen Xuan Duong - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee; Nguyen Huu Cau - Member of the Standing Committee of the Provincial Party Committee, Director of the Provincial Police; Hoang Viet Duong - Vice Chairman of the Provincial People's Council; Huynh Thanh Dien - Vice Chairman of the Provincial People's Committee...

Provincial Party Secretary Nguyen Dac Vinh delivers a directive speech at the working session. Photo: Thanh Le

During the period 2011-2016, Nghe An province implemented 31 ODA programs and projects and preferential loans from foreign donors with a total investment capital of over 14,183 billion VND (10,855.28 billion VND of committed foreign capital and 3,327.85 billion VND of domestic counterpart capital).

As of January 31, 2018, the cumulative disbursed ODA foreign capital was 5,969.79/10,855.28 billion VND of the total committed capital, reaching a rate of 54.99%. To date, 16 projects have been completed and put into operation in the 2011-2016 period, and 15 projects are being carried over to the 2016-2020 period and subsequent years.

The total domestic counterpart funding allocated to projects during the 2011-2016 period was VND 1,639.97 billion.

ODA programs and projects in the area have been implemented effectively, achieving the approved project objectives, and strictly adhering to the regulations on the management and use of ODA funds of the Vietnamese Government and the requirements of foreign donors.

ODA funding has been implemented quite comprehensively in most areas of the province, across many fields such as: urban infrastructure construction, transportation, irrigation, agriculture, forestry and fisheries, water supply and drainage, wastewater treatment, environmental sanitation, education and training, health care, poverty reduction, significantly improving the lives of people, especially in difficult mountainous areas.

Chairman of the Provincial People's Committee Nguyen Xuan Duong delivered a speech directing all levels and sectors to overcome shortcomings and limitations in the use of ODA loans. Photo: Thanh Le

Besides the achievements, attracting, managing, and utilizing ODA capital during the 2011-2016 period faced several difficulties and limitations: Domestic procedures for ODA programs and projects are still quite complex, involving many steps, levels, and sectors from the central to local levels; many procedures are governed by the specific regulations of the donors...

Due to limited local budgets, despite the province's efforts, some projects have not been able to balance and allocate counterpart funds in a timely manner according to schedule, resulting in slow and prolonged project disbursement.

The capacity and experience of some project owners and project management boards in directing implementation are limited, especially in land clearance work, which is slow, resulting in delays in meeting commitments with donors and requiring extensions of the implementation period.

During the monitoring session, Deputy Head of the Provincial National Assembly Delegation Nguyen Thanh Hien suggested that the Provincial People's Committee should arrange and supplement counterpart funds for management, maintenance, and repair work; and direct investors and project management boards to complete the final settlement of accounts for projects.

In addition, the province needs to continue attracting ODA funding to supplement the total investment capital for development, serving the socio-economic development of the province.

Deputy Head of the Provincial National Assembly Delegation Nguyen Thanh Hien suggested that the Provincial People's Committee should pay attention to directing and managing the effective use of projects and works funded by ODA loans. (Photo: Thanh Le)

Concluding the meeting, Provincial Party Secretary Nguyen Dac Vinh affirmed that ODA programs and projects have made significant contributions to socio-economic development, poverty reduction, and social welfare.

The Provincial Party Secretary requested the Provincial People's Committee to direct the departments, agencies, and localities implementing ODA projects to address the existing problems.

From the provincial level down to the grassroots, there needs to be a change in mindset and perception regarding ODA projects; it must be recognized as an important source of capital for promoting socio-economic development in the province, while also contributing to the province's foreign relations and relationships with other countries and international organizations.

Comrade Nguyen Dac Vinh requested that the Provincial People's Committee develop a specific plan for the project implementation process, as well as a plan for allocating counterpart funds; strengthen management and ensure the effective use of ODA loans; and conduct inspections and audits to prevent losses and waste.

The Thai Hoa wastewater treatment plant was built with funding from a World Bank loan. (Photo: Thanh Le)

On behalf of the provincial People's Committee leadership, Chairman Nguyen Xuan Duong received the feedback; and at the same time directed all levels and sectors to overcome existing shortcomings and limitations in the coming time.

The Chairman of the Provincial People's Committee assigned the current project management boards and investors the task of continuing to direct, inspect, and urge the completion of the projects currently being implemented.

The most relevant departments, especially the Departments of Planning and Investment and Finance, are responsible for arranging counterpart funding for projects and addressing delays.