Illustrative photo (Source: VNA) HCM City (VNA) – Ho Chi Minh City’s authoritieshave asked the Ministry of Planning and Investment and the Ministry of Financeto allocate an additional 48.76 trillion VND (2.14 billion USD) of officialdevelopment assistance (ODA) in the next three years, with 8 trillion VND (352.33million USD) allocated for this year.
The Japan International Cooperation Agency (JICA) has urged thecity to work with the government to request more funds to implement twoJICA-funded projects this year.
The work includes construction on metro line No 1 Ben Thanh-SuoiTien and the second phase of a water environment improvement project on the TauHu-Ben Nghe-Đoi-Te canal.
Under commitments with the contractors, annual ODA loans neededfor the two projects would reach 29.51 trillion VND (1.3 billion USD) by 2020,and 7 trillion VND (308.34 million USD) for this year.
However, ODA funds from the central Government this year have yetto be allocated for the two projects, according to the municipal People’sCommittee.
The city has also asked the Prime Minister to urge the ministriesto consider allocating ODA funds for the projects to meet the constructionschedule.
Allocation of ODA funds on time plays an important role inensuring the progress of project implementation and prevents costs incurred bylate payments claimed by foreign contractors.
JICA last year signed ODA loan agreements with Vietnam, totaling 166.12billion JPY (1.53 billion USD) for three projects.
The three projects are the metro line No 1 under the HCM CityUrban Railway Construction Project, the second phase of the water environment improvementproject, and the Thai Binh thermal power plant and transmission lineconstruction project.
The loans aim to improve economic infrastructure essential tostrengthening Vietnam’s competitiveness and promoting environmentalimprovements.
The construction of the urban railway will alleviate trafficcongestion and air pollution while encouraging regional economic development.
The water drainage project in HCM City is expected to improvewater treatment capacity and reduce flooding.
In addition, the Thai Binh power project will use coal produced inthe country to meet increasing power needs, boosting economic development andstrengthening the country’s international competitiveness.-VNA
The Japan International Cooperation Agency (JICA) has urged thecity to work with the government to request more funds to implement twoJICA-funded projects this year.
The work includes construction on metro line No 1 Ben Thanh-SuoiTien and the second phase of a water environment improvement project on the TauHu-Ben Nghe-Đoi-Te canal.
Under commitments with the contractors, annual ODA loans neededfor the two projects would reach 29.51 trillion VND (1.3 billion USD) by 2020,and 7 trillion VND (308.34 million USD) for this year.
However, ODA funds from the central Government this year have yetto be allocated for the two projects, according to the municipal People’sCommittee.
The city has also asked the Prime Minister to urge the ministriesto consider allocating ODA funds for the projects to meet the constructionschedule.
Allocation of ODA funds on time plays an important role inensuring the progress of project implementation and prevents costs incurred bylate payments claimed by foreign contractors.
JICA last year signed ODA loan agreements with Vietnam, totaling 166.12billion JPY (1.53 billion USD) for three projects.
The three projects are the metro line No 1 under the HCM CityUrban Railway Construction Project, the second phase of the water environment improvementproject, and the Thai Binh thermal power plant and transmission lineconstruction project.
The loans aim to improve economic infrastructure essential tostrengthening Vietnam’s competitiveness and promoting environmentalimprovements.
The construction of the urban railway will alleviate trafficcongestion and air pollution while encouraging regional economic development.
The water drainage project in HCM City is expected to improvewater treatment capacity and reduce flooding.
In addition, the Thai Binh power project will use coal produced inthe country to meet increasing power needs, boosting economic development andstrengthening the country’s international competitiveness.-VNA
VNA
