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ECONOMY - POLICY

CAPITAL SITS IDLE

Considered a key investment source, ODA funds can often
be tied up by complicated procedures and requirements.
By TRAM ANH

isbursement of ODA funds by min- of Planning and Investment, reported Management Board (the project investor
istries and sectors this year had that, in 2024, Hanoi has six ODA projects of all metro lines), the preparation process
D reached 8.58 per cent of the total allocated funds of nearly VND3.896 trillion for these nationally-important projects
as of mid-May, while the rate for localities ($152.2 million). However, estimated dis- involves numerous steps, including 64 for
stood at 5.7 per cent. A number of min- bursement from the city’s 2024 plan is ODA-funded projects and 52 for State or
istries, sectors, and localities have yet to quite low, reaching just VND856 billion local budget-funded projects. This process
begin disbursing their 2024 capital plans ($33.5 million), or 21.98 per cent, due to requires multiple rounds of consultations
due to a host of issues. issues relating to adjusting investment and clarifications at various government
policies and extending loan agreements. levels, from local to central governments
Tardy Mr. Tien indicated that while issues and the National Assembly.
disbursement with the Metro Line No. 3 project have When a project is in need of adjustment,
Hanoi’s Metro Line No. 3 between been largely resolved, adjustments to invest- procedures for modifying investment poli-
Hanoi Train Station and Nhon is one of ment policies and extensions of loan agree- cies and the project itself are almost iden-
six ODA projects in Vietnam’s capital ments have fallen behind schedule. The tical to those for initial approval.
continuing to receive ODA funding in Hanoi People’s Committee is now actively In the Mekong Delta’s Ben Tre province,
2024. Despite construction having been directing investors to address their diffi- two projects now underway are using
underway for 14 years, progress on tunnels culties and promptly report to the govern- ODA funds: Ben Tre General Hospital,
and underground stations has only ment and relevant ministries to seek solu- and another developing a smart technology
reached 42.22 per cent of plans due to tions. Construction of Hanoi’s Metro Line chain adaptable to climate change, with
prolonged delays in site clearance. Con- No. 2 project, between Nam Thang Long total allocated ODA of VND190 billion
sequently, the foreign contractor halted and Tran Hung Dao, which has total revised ($7.43 million). However, as of May 15,
construction in August 2021, demanding investment of VND35.588 trillion ($1.39 disbursement at the two projects had
compensation and an extension of the billion) from Japanese ODA, is yet to com- reached only VND26.6 billion ($1.04 mil-
loan agreement with foreign donors. mence due to issues surrounding procedures lion), primarily due to unsuccessful ten-
During a recent online conference on in adjusting investment policies. dering processes, and Ben Tre is currently
the disbursement of public investment Urban railway projects in Vietnam face revising the bidding documents so that
from foreign capital, Mr. Le Sinh Tien, significant constraints from their reliance implementation can continue.
Deputy Head of the Planning and Invest- on foreign ODA funds. According to lead- Localities around Vietnam were allo-
ment Division at the Hanoi Department ers at the Hanoi Metropolitan Railway cated total ODA funds of VND24.172.86

8 Vietnam Economic Times May 27, 2024 en.vneconomy.vn