Prime Minister Pham Minh Chinh has agreed with a plan to secure official development assistance (ODA) loans committed by development partners totaling $2.53 billion for 16 sustainable development projects in adapting to climate change in the Mekong Delta.

Chairing a conference on tackling difficulties to speed up highway projects and the disbursement of ODA capital in the Mekong Delta, held in Can Tho city on July 8, Prime Minister Chinh asked authorities in 13 Mekong Delta localities to review ODA projects and select project management boards and investors with sound capacity and experience for implementation.

The region now has 62 projects using ODA and foreign loans worth over VND56.4 trillion ($2.8 billion).

The average disbursement rate in the region in the first half of this year is just 5.3 per cent; much lower than the national rate of 15.7 per cent.

Participants at the conference attributed the slow disbursement to obstacles caused by outdated institutions and regulations; poor preparations for projects; problems in adjusting projects, investment intent, and loan agreements; and issues in the procedures of both Vietnam and donors.

The Prime Minister instructed the Ministry of Planning and Investment to coordinate with the Ministry of Finance and related agencies and localities to work with development partners on streamlining and harmonizing the procedures of partners and Vietnam.

Regarding highway projects, there are eight projects being implemented in the Delta with a total length of more than 460 km. Investment is estimated at VND94.4 trillion ($3.99 billion).