Jica urges disbursement of ODA loans for projects in Vietnam

22-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

The Japan International Cooperation Agency (Jica) has urged Vietnam to speed up the disbursement of official development assistance (ODA) loans for infrastructure projects in the country as slow disbursements have hindered the execution of these projects.

At a press briefing by Jica on October 17, Konaka Tetsuo, Jica’s chief representative in Vietnam, noted that while many new ODA projects involving technical cooperation and nonrefundable aid packages have been rolled out smoothly, many other ODA-funded projects introduced last year have yet to be executed, the local media reported.

For some projects, the slow disbursement has led to late payments for contractors of projects, especially projects involving private enterprises, who may now be hesitant to develop new projects or expand existing ones in the country.

Tetsuo took the first metro line project in HCM City as an example, noting that late payments for contractors have prevented the project from being completed. Therefore, Jica has worked with the Vietnamese agencies to accelerate the project’s execution.

Large infrastructure projects take a long time to be completed, Tetsuo remarked, adding, “If we are reluctant to push…in the early stages, this will affect future economic growth. This is our biggest concern.”

He also advised Vietnam not to excessively pursue public debt control as doing so might restrict economic growth and negatively impact development projects.

As for plans in the coming months, Tetsuo confirmed that Jica will continue supporting the Vietnamese government’s long-term plans, such as the socioeconomic development strategy for 2030 and the socioeconomic development plan for 2050.

According to Jica, it executed 28 ODA-funded projects in Vietnam from April to September this year and signed no new loan agreements. Nearly 8.8 billion yen (US$81 million) was disbursed.

The agency is executing 33 projects on technical cooperation as well as four nonrefundable aid packages.

https://english.thesaigontimes.vn/72143/jica-urges-disbursement-of-oda-loans-for-projects-in-vietnam.html

 


Category: Economy, Vietnam

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