HANOI, April 28 (Engineering Daily) -- Shortage of counterpart fund for ODA transport projects is happening and starts to leave some negative impacts.
According to MOT, in 2016, ODA transport projects have been allocated by the Government with the foreign capital of only VND 16,155 billion in the total demand of 33,818 billion (47.8% occurred) and counterpart fund of 1,689 billion in total of 12,790 billion (13.2% occurred) for 21 completed projects and 22 transferred projects.
“Since early 2015, MOC has repeatedly reported and suggested Prime Minister to supplement the counterpart capital (VND 8,170 billion) for ODA projects. However, it has not been proceeded so far”, Minister of MOC-Truong Quang Nghia said.
Lack of counterpart fund for ODA projects will create many difficulties during implementation, especially site clearance activity, equipment import tax returns, VAT returns and etc. influencing the project progress, likely arising complaint/claim from foreign contractors leading compensation (similar to Nhat Tan bridge circumstance before), affecting badly to commitment of Vietnam Government to donors.
The project of highway section Tan Vu – Lach Huyen, Hai Phong city, that has total investment of VND 11,849 billion by MOC as investor, is lacking VND 257 billion of counterpart fund while it is planned to complete within 2017.
According to the PMU 2, so far, the Client has owed the Contractors about 189.292 billion of the VAT returns and 17.592 billion of imported tax and VAT during importing. At the same time, the Contractors claimed for late payment under contract provision.
“In order to ensure the project progress, disbursement and payment and to avoid complaints and litigations on late payment from Contractors, the Government is requested for consideration to supplement the counterpart capital of year 2015 about 257 billion”, representative of Client said.
Shortage of ODA transport projects supposes to be happened in the period of 2016-2020.
Further to the progress and the remaining amount of the project and medium-term public investment plans period 2016-2020, the MOT has proposed to allocate 272,564 billion for ODA projects, including 221,197 billion in foreign capital (131,902 billion has signed agreements with donors; 89,295 billion continued to call for funding) and 51,367 billion of counterpart funds (36,590 billion for the completed project, the transferred projects and newly started Thinh Long bridge project; 14,777 billion for projects in need call for funding). These projects have a total investment of 540,574 billion (of which foreign capital of 436,268 billion and counterpart fund of 104 306 billion); 118,504 billion (94 381 billion of foreign capital, domestic capital 24 123 billion) was disbursed from the beginning of the project until the end of 2015.
However, according to the estimated data (checked data) of Ministry of Planning and Investment’s written No. 916/BKHĐT-TH dated on 5 Feb 2016, VND 72,117 billion of foreign capital and 16,116 billion of counterpart funds has just been balanced. Thus, foreign capital lacks 149,080 billion and counterpart fund lacks about 35,251 billion compared to the demands (20,475 billion for transferred projects and 14,776 billion for the funding called projects).