Official Development Assistance (ODA) is a form of foreign investment through long-term, low-interest or interest-free loans to the Government of a country being invested in, with the aim of developing the economy and improving social welfare. From ODA capital, our province focuses on implementing programs and projects, contributing to solving urgent problems of economic and social infrastructure, hunger eradication and poverty reduction in the province.
In the 2021-2025 period, Son La province will implement 5 projects using ODA capital and preferential loans mobilized from the World Bank (WB); Japan International Cooperation Agency (JICA); ODA loans from the German and Swiss Governments; French Development Agency (AFD), with a total investment of over VND 2,614 billion. Of which, the project "Strengthening land management and land database (VILG)" will be completed in June 2023; the projects "Son La city drainage and wastewater treatment system", "Investment in construction and development of the grassroots health service delivery system - Son La province component project" are being implemented.
For the two newly approved investment projects, including: “Rural development adapting to natural disasters, Son La province” and “Improving urban infrastructure to respond to climate change in Son La city”, investors are currently completing procedures to approve the project investment decision. In addition, Son La province is implementing the project “Strengthening key connectivity infrastructure to create momentum for sustainable socio-economic development in Son La province” proposing to use loans from the Asian Development Bank (ADB), with a total investment of more than 3,667 billion VND.
The Provincial ODA Project Management Board is managing and implementing 2 projects, of which the project "Son La City Drainage and Wastewater Treatment System" uses ODA capital from the German Government and the Swiss Government, with a total investment of over 932 billion VND. The project is divided into 2 phases, of which phase 1a has been completed and put into use since 2020, including the following items: Level 1, 2 and level 3 wastewater collection pipeline system; 5 pumping stations, total capacity of 2,187.97 m3/h; wastewater treatment plant with a capacity of 6,857 m3/day and night.
Currently, the investor is urging contractors to speed up construction progress, strive to complete the contract, and meet the overall project schedule. Mr. Dao Manh Chien, Deputy Director of the Provincial ODA Project Management Board, informed: By May 2023, Package No. 12 will complete the renovation and repair of 8 main roads. Package No. 14 will provide equipment, construct and install additional pumping stations, pipeline networks, and connect drainage households. Construction will start in July 2023 and is expected to be completed in February 2024. The completed project will increase the capacity to collect and treat domestic wastewater, contributing to ensuring the environment of Son La city according to the set goals.
Programs and projects using ODA capital have promoted efficiency, improved rural infrastructure, urban infrastructure, promoted economic restructuring, stabilized and improved people's material and spiritual life. Most ODA loans and preferential loans from donors are aimed at investing in infrastructure to respond to climate change, prevent natural disasters, and connect traffic infrastructure... which are the infrastructures that Son La province needs to focus investment resources on.
However, balancing and arranging counterpart funds to implement programs and projects using ODA capital is difficult due to the limited resources of the province. According to regulations on management of projects using ODA capital, preferential loans are currently implemented according to the re-borrowing mechanism, with Son La province having a re-borrowing rate of 10%; there are transitional projects that have to re-borrow at a rate of 30%, such as: The project "Improving urban infrastructure to respond to climate change in Son La city" using ODA capital from AFD, leading to difficulties for the province in balancing debt repayment sources...
Mr. Nguyen Minh Tien, Director of the Department of Planning and Investment, said: In order to attract, manage and use ODA capital and preferential loans effectively, the province needs to consider, balance and select from the total sources of development investment capital, closely following the objectives of the socio-economic development plan, the medium-term public investment plan and the 5-year medium-term financial plan 2021-2025 of the province. Ensure that public debt, government debt and state budget deficit indicators are within the allowable limits; ensure that the re-borrowing of ODA loans and foreign preferential loans is within the permitted outstanding debt limit as prescribed by the State Budget Law and the borrowing and repayment levels in the year approved by the National Assembly.
Using ODA capital and preferential loans effectively, Son La province prioritizes investment in projects to solve basic bottlenecks in transport infrastructure, urban areas, population, clean energy and renewable energy; adapt to climate change; improve the quality of the environment, education, health, technology, skills... contributing to promoting local socio-economic development.
Article and photos: Minh Thu
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