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HCMC proposes resolving slow disbursement issues for metro lines
Friday,  10/30/2020, 08:10 

HCMC proposes resolving slow disbursement issues for metro lines

The Saigon Times

A section of the Metro Line No. 1 project in HCMC. HCMC Vice Chairman Vo Van Hoan told a teleconference on October 29 the first and second metro line projects were facing difficulties in the disbursement of official development assistance (ODA) loans and proposed removing the obstacles as soon as possible – PHOTO: VNA

HCMC – Speaking to the Government during a teleconference on October 29, HCMC Vice Chairman Vo Van Hoan said that the first and second metro line projects are facing difficulties in the disbursement of official development assistance (ODA) loans and proposed removing the obstacles as soon as possible.

Some VND2.5 trillion of ODA capital allocated for the two projects by the State budget has yet to be disbursed due to the volatile exchange rate between the Vietnamese dong and the Japanese yen, Hoan said.

To eliminate the obstacle, HCMC proposed the Government ask the Ministry of Planning and Investment to quickly calculate the value of the ODA capital in the Vietnamese dong to ensure the progress of the two metro line projects and fulfill the city’s disbursement target.

The city also proposed the Government allow the disbursement to be made in early 2021 if the ODA capital is not disbursed this year, the local media reported.

Besides, the HCMC government proposed the Ministry of Finance weigh in on extending Loan Agreement VN11-P7 of the first metro line to October 31, 2021, to ensure sufficient capital for the implementation of the project.

Hoan told the teleconference that the city is executing nine ODA projects with a total investment of VND123 trillion.

As of October 23, the city had allocated over VND5 trillion from the ODA capital to six projects, resulting in the disbursement rate of the ODA capital reaching a mere 30% of the plan.

If the ODA disbursement for the city’s first and second metro line projects is completed, the disbursement rate of the capital allocated by the State budget will be 80%-90%.

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