The Ministry of Transport proposed to disburse ODA capital for 4 projects of VEC

Hanoi, July 17 (Engineering Daily) -- The Ministry of Transport (MOT) has just issued a report to the Prime Minister on difficulties and problems in ODA capital disbursement of projects invested by VEC(Vietnam Expressway Corporation).

At present, VEC is the investor and acknowledges the ODA loans for 4 expressway projects including Noi Bai - Lao Cai, Ho Chi Minh City - Long Thanh - Dau Giay, Da Nang - Quang Ngai and Ben Luc - Long Thanh.

Previously, the Ministry of Finance proposed to the Prime Minister, while waiting for competent authorities to approve the policy shifting from the ODA re-lending to the state budget allocation mechanism, the Ministry of Finance and VEC temporarily stopped approving the disbursement dossiers for the entire ODA capital of the above 4 projects.

However, the MOT said that stopping the disbursement of expressway projects led to the disruption of the project financing, affecting the policies committed with donors, potentially threatening complaints from the contractors, especially foreign contractors, impacting the prestige of the Government to donors and international credit institutions.
Therefore, the MOT asked the Prime Minister to consider allowing the continued disbursement of ODA under the public investment plan 2016-2020 and 2018 assigned to projects by the Prime Minister.