Prime Minister requests to accelerate disbursement of ODA capital and foreign preferential loans

Construction of Truong Vinh tunnel through hamlet 7, Quynh Vinh commune (Hoang Mai town). Photo: Dao Tuan

The dispatch stated: Currently, the COVID-19 epidemic situation is basically under control nationwide. The task of promoting the disbursement of public investment capital, including ODA capital and foreign preferential loans (ODA capital), is considered one of the important "link" solutions to recover the economy and successfully achieve the socio-economic development goals in 2022. In recent times, the Government and the Prime Minister have taken many drastic and specific measures to accelerate the disbursement of ODA capital in 2022 and the following years.

However, the disbursement of ODA capital in 2022 is still slow and has not been improved, reducing the efficiency of using public investment capital, reducing the attraction of other social resources, causing waste of resources, affecting the economic recovery momentum after the COVID-19 pandemic. According to the report of the Ministry of Finance, the disbursement of ODA capital from the central budget by March 31, 2022 only reached 0.99% of the plan assigned by the Prime Minister.

The slow disbursement of ODA capital is due to many reasons, in addition to the impact of the COVID-19 pandemic, inflationary pressure, high prices of construction materials, iron and steel, sand, stone, and cement, causing the construction progress of ODA projects to slow down. However, the main subjective reasons are still: some ministries, branches, and localities still lack political determination, the role of the leader has not been fully promoted, and there is not really a strong determination in leadership and direction. Coordination between ministries, central agencies, localities, and donors is still not tight. Project readiness is not good. Compensation and site clearance work still faces difficulties and obstacles due to the need to harmonize domestic procedures and donor policies, and complicated legal regulations on ODA capital...

In order to accelerate the progress of implementation and disbursement of ODA capital to improve efficiency and make an important contribution to economic recovery and development, striving for the ODA disbursement rate in 2022 to reach 100% of the plan, the Prime Minister requested ministries, central agencies and localities to continue to strictly implement the Resolutions of the Party, the National Assembly, the Government and direct the Prime Minister to promote the disbursement of public investment capital in general and ODA capital in particular; considering the task of disbursing ODA capital as one of the key political tasks of 2022 and the following years. Along with that, strengthen discipline and order in disbursing ODA capital, promote the role and responsibility of leaders, review the allocation of capital to projects in accordance with the implementation progress and disbursement capacity, ensure focus, key points, not spread out, fragmented, prolonged.

The dispatch clearly stated: Resolutely and synchronously implement the goals, tasks and solutions set out in Resolution No. 01/NQ-CP dated January 1, 2022 of the Government on key tasks and solutions to implement the Socio-Economic Development Plan and State Budget Estimates for 2022; Resolutions of regular meetings of the Government, Official Dispatch No. 126/CD-TTg dated February 12, 2022 of the Prime Minister on urging resolute and effective implementation of the Socio-Economic Recovery and Development Program, accelerating the disbursement of public investment capital; directions of 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, 1173/VPCP-QHQT dated February 24, 2022 of the Government Office.

Ministries, agencies and localities with slow disbursement must seriously learn from experience, clarify responsibilities, and on that basis propose appropriate solutions for allocation and disbursement in the coming time; review, rectify, and promptly resolve difficulties, obstacles, and bottlenecks, while speeding up the disbursement progress of ODA capital while ensuring the quality of works and the effectiveness of ODA capital use, preventing waste, loss and corruption; and be responsible to the Government and the Prime Minister if there is a delay in ODA capital disbursement in 2022.

At the same time, coordinate with foreign donors and ministries and localities to develop detailed disbursement plans for each ODA project, especially key projects with large capital; assign leaders to be directly in charge of each project; organize regular meetings with relevant agencies and units to promptly grasp and remove difficulties and obstacles in disbursement work. At the same time, focus on accelerating site clearance and construction progress, removing difficulties and obstacles related to land and resources; carry out acceptance and payment as soon as there is volume, proactively transfer capital plans between slow-disbursement ODA projects to ODA projects with good disbursement progress, lacking capital and prioritizing sufficient capital allocation for Agreements ending in 2022, 2023... In case of difficulties and obstacles, send them to the Ministry of Planning and Investment and the Ministry of Finance for synthesis and reporting to the Government and the Prime Minister for consideration and settlement according to their authority.

The Ministry of Planning and Investment shall preside over and coordinate with the Ministry of Finance to synthesize and submit to competent authorities the capital transfer plan for public investment in 2022 of ministries, central agencies and localities in accordance with the direction of the Prime Minister in Official Dispatch No. 1993/VPCP-KTTH dated March 31, 2022 of the Government Office. At the same time, preside over and coordinate with the Ministry of Finance and ministries, branches and localities to synthesize and supplement the medium-term public investment plan with foreign capital for the period 2021 - 2025 and 2022 for eligible ODA projects, and report to the Government to submit to the National Assembly Standing Committee.

At the same time, urgently submit to the Government before April 15, 2022 the Decree amending Decree No. 114/2021/ND-CP dated December 16, 2021 on the management and use of ODA capital and preferential loans of foreign donors, which stipulates simplification of processes and procedures to immediately remove difficulties and obstacles in the disbursement of ODA capital and preferential loans of foreign donors; strengthen decentralization in the management and use of ODA capital associated with the responsibilities of levels and units using ODA capital.

The Ministry of Finance directs functional units to ensure payment sources for projects; review regulations to continue simplifying procedures, shortening the time for controlling expenditures and withdrawing capital from donors, ensuring compliance with regulations; coordinate with relevant agencies and units to promptly handle problems related to payment and settlement; coordinate with foreign donors, relevant agencies and competent authorities to speed up the progress of negotiations, signing agreements, implementing projects and disbursing and withdrawing capital from donors; preside over and coordinate with the Ministry of Planning and Investment and ministries, branches and localities to summarize and evaluate Directive No. 18/CT-TTg dated June 29, 2019 of the Prime Minister; Propose necessary solutions to remove difficulties in the implementation process, adjust ODA projects, foreign preferential loans in accordance with the direction of the Prime Minister in Official Dispatch No. 1721/VPCP-QHQT dated March 19, 2022 of the Government Office.

Ministers, Heads of ministerial-level agencies, Government agencies, Chairmen of People's Committees of provinces and centrally-run cities, and Heads of ODA-using units are responsible for strictly implementing the tasks and solutions in this Official Dispatch.

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