Nhat Tan Bridge, one of major infrastructure projects using the official development assistance (ODA) loans. (Source: VNA) Hanoi (VNA) – The government has recently issued Decree No.56/2020/ND-CP onmanagement and use of official development assistance (ODA) and concessionalloans granted by foreign sponsors to Vietnam.
Accordingly,foreign sponsors can be foreign governments, international organisations, inter-government or internationalorganisations, and governmental organisations authorised by foreign governments.
Methods for the provision of ODA and soft loansinclude programme, project, non-project and budget assistance.
Regarding the usage of non-refundable ODA, priority will be given to socio-economic infrastructure programmes and projects;capacity building; supporting formulation of policies, institutions andreforms; prevention and mitigation of natural disasters and response to climatechange; social security; among others.
ODA loans will be used for execution of programmes and projects inhealthcare, education and vocational training, climate change adaption,environment protection, and essential infrastructure that are not able to produce paybacks.
The ODA and concessionalloans shall not be used for regular spending, payment of fees, taxes and interests, or purchaseof cars (except for those approved by competent authorities) and siteclearance, among others.
The decreealso outlines rules to prevent and deal with corruption, losses andwastefulness in management and use of ODA and soft loans in accordance withlaw.
It took effectfrom May 25./.
VNA
