Tuesday,  Oct 23, 2018,11:50 (GMT+7) 0 0
ODA loan disbursements exceed ceiling
Tuesday,  May 22, 2018,23:41 (GMT+7)

ODA loan disbursements exceed ceiling

HCMC – The VND300 trillion (US$13.1 billion) upper limit of official development assistance (ODA) loan disbursements in the 2016-2020 medium-term pubic investment plan has been breached, Thanh Nien newspaper reports.

The State Audit Office of Vietnam (SAV) said in its recent State budget auditing report that medium-term ODA disbursements are roughly VND37 trillion higher than the approved cap.

The SAV cited a report by the Ministry of Planning and Investment as saying that foreign loans worth VND109.63 trillion (US$4.8 billion) are needed. Around VND72.68 trillion in what are called extra expenses has yet to be included in the plan.

Some extra expenses come from 19 projects whose loan agreements worth around US$2 billion have been signed. As many as 44 other projects whose foreign loans reach some US$3.78 billion have been approved in principle.

Besides, 36 newly approved projects under ministries, agencies and local governments consist of foreign loans worth roughly US$2.9 billion.

Other projects have faced cost overruns of around VND25 trillion. For example, Metro Line No.1 linking Ben Thanh Market in District 1 and Suoi Tien Park in District 9, HCMC requires an additional VND20 trillion.

Five projects whose financing mechanism was changed from re-lending to direct public investment are four expressway projects of the Vietnam Expressway Corporation, and the Hanoi-Haiphong Expressway project.

If the five projects get the nod from the National Assembly, they would cost an extra VND33.65 trillion.

The National Assembly will likely adjust the 2016-2020 medium-term pubic investment plan which was approved in 2016.

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