Inconsistent Bidding Rules Hinder ODA Disbursements in Vietnam
Disbursements of official development assistances (ODA) in Vietnam have gone slowly over the years, said a World Bank specialist, citing the inconsistence between international and domestic procurement regulations as a major reason.
Kofi Awanyo, leader of the WB Procurement Hub, was quoted by the Thoi bao Kinh te newspaper as saying that nearly $11.2 billion worth of ODA loans had not yet been disbursed by late 2008, doubling the 2004 figure.
Completion of almost all ODA-funded projects in Vietnam normally lags three years behind initial schedule due to slow capital disbursement, caused by the differences between bidding rules set by Vietnamese government and foreign donors.
The project contractors in Vietnam, which now has the lowest ODA disbursement ratio in the region, have been confused since each donor has its own procurement regulations.
Vietnamese Ministry of Planning and Investment are working with foreign donors to draw out a common regulation on dealing with the differences, in a move to boost disbursements of ODA loans in the Southeast Asian country.
Vietnam disbursed $844 million in ODA in the first five months of this year, up 17.2% from a year earlier. The country targets to disburse $3.5 billion in ODA in 2010, the MPI said.
ODA loans for Vietnam are mainly sourced from the WB, ADB, JICA, EDCF and other institutions from Australia, France, China and Germany. (Investment, Vietnam Economic Times)
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