Deputy Prime Minister Pham Binh Minh has requested that the disbursement of public investment capital, including ODA loans and foreign preferential loans, be sped up.

According to the Ministry of Finance (MoF), public investment disbursement of foreign capital reached only 7.52 per cent of the plan in the first seven months of 2021, down 9.63 per cent compared to the same period of last year.

The disbursement of ODA loans in localities is only 2 per cent. Provinces such as Ha Giang, Dien Bien, Lai Chau, Yen Bai, Hoa Binh, Thai Nguyen, and Lang Son, MoF said, are the slowest, while large cities such as Hanoi, Ho Chi Minh City, and Hai Phong also have a lower rate of such disbursement than in previous years.

One reason for the slow disbursement of ODA loans is the heavy impact of Covid-19, which has affected the importation of machinery and equipment and the hiring of foreign experts. Processes and procedures for managing and using ODA loans under current regulations are complicated, affecting the implementation of ODA programs and projects, with some not being completed as planned.

The Deputy Prime Minister also requested that ministries, branches, agencies, and localities using ODA loans conduct specific reviews and assessments of each project’s capacity for disbursement. Projects that are unable to complete the task within schedule must change the capital plan and send a written proposal to the Ministry of Planning and Investment (MPI) as well as MoF during August, in accordance with Resolution No. 63/NQ-CP.

Regarding the proposal to continue implementing the signed loan agreement to use ODA loans and foreign preferential loans to pay tax for projects, the Deputy Prime Minister has assigned the MPI to consider and use this in order to replace Decree No. 56/2020/ND-CP from the government on the management and use of ODA loans and concessional loans from foreign donors in order to facilitate a number of projects.