PM asks for unnecessary expenses in ODA projects to be cut

ABO/NDO - Prime Minister Nguyen Xuan Phuc has asked for tighter management and efficiency of ODA loans to serve investments for development, while cutting unnecessary spending in ODA projects such as car purchases.

PM Nguyen Xuan Phuc along with Deputy PMs Vuong Dinh Hue and Pham Binh Minh at the meeting (credit: Tran Hai).

The PM made the request while chairing a meeting with several ministries and sectors on the management of ODA and preferential loans on March 8.

Attendants were in agreement that foreign ODA and preferential loans must be used only for development investment purposes and not for regular expenses. However, the distinction between regular expenses and investments for development remains unclear in ODA projects.

They said that expenses for development investments should cover projects on "soft infrastructure" including capacity enhancement, technical support, and human development but not only "hard infrastructure" development.

The PM emphasised the important role of ODA for socio-economic development of Vietnam but also admitted inadequacies in ODA management over the past.

The Government leader agreed that clearer criteria for development investments and regular expenses must be set out in ODA projects to avoid mistakes.

The PM confirmed that ODA loans signed after 2017 will only be used for development investments and not for regular expenses. He also told ODA management agencies to review and reduce inefficient spending and report the results to the government.

(Source: NDO)