Meeting scene. (Photo: Thanh Liem/TTXVN)
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On March 9, in Can Tho city, the Ministry of Planning and Investment chaired a meeting of the Steering Committee for the “Sustainable Development of the Mekong Delta in Response to Climate Change” projects using foreign loans (the Mekong DPO project).
The meeting was attended by representatives from 4 international organizations including the World Bank (WB), the Asian Development Bank (ADB), the Korea Export-Import Bank (KEXIM), the Japan International Cooperation Agency (JICA), as well as the Australian Embassy and provinces and cities in the Mekong Delta with proposed projects in the “Sustainable development of the Mekong Delta in response to climate change” and related projects.
At the meeting, Mr. Pham Hoang Mai, Head of the International Economic Division of the Ministry of Planning and Investment, stated that the Mekong DPO projects are proposed by the Ministry of Transport, the Ministry of Agriculture and Rural Development, and 13 localities in the Mekong Delta. These projects include 16 projects with a total investment of VND 99,133 billion, of which Vietnam’s counterpart capital is VND 30,037 billion and foreign loans amount to $2.932 billion (equivalent to VND 69,096 billion).
Compared to the Resolution No. 108/NQ-CP dated July 18, 2023 of the Government on mobilizing ODA capital, concessional loans from abroad, and the loan-to-foreign-capital ratio of projects in the Mekong Delta, the total investment of the 16 projects has increased by VND 12,796 billion (counterpart capital increased by VND 3,769 billion, and foreign loans increased by $379 million).
According to Mr. Pham Hoang Mai, the increase in the total investment of the Mekong DPO projects is mainly due to changes in the project proposals by the localities. Specifically, some projects have undergone significant changes, such as the project in Bac Lieu province with an increase of VND 6,180 billion; the project in Soc Trang province with an increase of VND 1,397 billion in counterpart capital and VND 1,589 billion in foreign loan; the project in Can Tho city with an increase of VND 992 billion in counterpart capital and VND 1,355 billion in foreign loan; and the project in Tien Giang province with a decrease of VND 663 billion in counterpart capital and an increase of VND 663 billion in foreign loan.
Currently, the overall progress of the projects is slower than the conclusions of the previous meeting held on July 15, 2023. According to Mr. Pham Hoang Mai, the delayed approval process of the projects is due to the low quality of the project proposals by the localities, which require many adjustments compared to the original plans. In addition, some localities like Bac Lieu province have proposed major changes compared to the previous proposals, and the agencies have been slow in responding to the documents from the Ministry of Planning and Investment.
Deputy Minister of Planning and Investment Tran Quoc Phuong speaking at the meeting. (Photo: Thanh Liem/TTXVN)
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At the meeting, Deputy Minister of Planning and Investment Tran Quoc Phuong stated that the Mekong DPO projects have been of special interest and priority for both Vietnam and its development partners.
The government has issued Resolution No. 108/NQ-CP dated July 18, 2023, agreeing to mobilize ODA capital and concessional loans from abroad for the 16 Mekong DPO projects, with the total amount of foreign capital mobilized adjusted based on the investment capital needs of the projects and in line with the commitments of the development partners. The approval rate for borrowing foreign capital is set at 10% for 14 projects under the responsibility of the Mekong Delta localities.
In addition, the National Assembly issued Resolution No. 106/2023/QH15 on November 28, 2023, and the government issued Resolution No. 16/NQ-CP on January 27, 2024, regarding the pilot implementation of certain special investment policies for road construction projects. This includes the delegation of authority to Can Tho city and Hau Giang province as the authorities in charge of the investment projects for National Highway 61C with JICA funding, as well as the assignment of Ben Tre and Tra Vinh provinces as the authorities in charge of the construction projects for Cua Dai Bridge and Co Chien 2 Bridge connecting the localities.
“Based on the important decisions of the competent authorities to resolve legal barriers mentioned above, the preparation and approval of the Mekong DPO projects have shown positive progress,” Mr. Tran Quoc Phuong said.
So far, the project of the Ministry of Transport (WB loan) and the project of Tra Vinh province (ADB loan) have been approved by the Prime Minister for proposal. In particular, the project of the Ministry of Transport is currently being appraised by the Ministry of Planning and Investment’s Feasibility Study Report.
The MERIT project of the Ministry of Agriculture and Rural Development (WB loan) and the project of Long An province (KEXIM loan) have been submitted to the Ministry of Planning and Investment for consideration and approval of the project proposal. As for the 4 projects in Dong Thap, Kien Giang, Tien Giang, and Soc Trang provinces, the Ministry of Finance has submitted financial-related matters to the Prime Minister.
 Representatives of international organizations at the meeting. (Photo: Thanh Liem/TTXVN)
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However, according to Deputy Minister of Planning and Investment Tran Quoc Phuong, the preparation and approval process to implement the Mekong DPO projects is still behind the directives of higher-level authorities and the expected schedule.
The project proposals of Ben Tre, Vinh Long, Kien Giang, An Giang, Bac Lieu, Ca Mau, Can Tho, and Hau Giang are still in the stage of gathering opinions from relevant agencies and have not been unified in terms of options and investment scale. They have not been reported to the Ministry of Finance for financial matters, so they do not have enough basis for the authorities in charge to absorb, refine, and submit the project proposals to the Prime Minister for consideration and approval.
In addition, the two projects of Cua Dai Bridge (connecting Tien Giang-Ben Tre) and Co Chien 2 Bridge (connecting Ben Tre-Tra Vinh) are newly proposed and funded by the provinces of Ben Tre, Tra Vinh, and Tien Giang. These are important projects that will complete the coastal road line of the Mekong Delta, supplementing and enhancing the effectiveness of the Mekong DPO projects.
In order to complete the approval process and expedite the implementation, and maximize the effects of the Mekong DPO projects on the development of the Mekong Delta and the newly emerged interprovincial connecting projects, Deputy Minister Tran Quoc Phuong suggested that state management agencies and authorities in charge be more proactive in completing the procedures according to regulations, actively resolving difficulties and obstacles, and urgently reporting matters beyond their capabilities to the competent authorities.
At the meeting, representatives from ministries, agencies, and localities with proposed Mekong DPO projects exchanged views and discussed measures to implement the decisions, conclusions, directives of the Government, the Prime Minister, and relevant higher-level authorities regarding the preparation and expedited approval process of the projects.
They also discussed and reached agreement with state management agencies and development partners on the roadmap and solutions to speed up the approval process and implementation of the Mekong DPO projects by identifying specific issues and responsibilities for resolution, and determining the approval roadmap for each project; and specifying the requirements of state management agencies and development partners for the project documents of the authorities in charge, as well as the specific requirements of the authorities in charge for state management agencies and development partners.
The localities and ministries also discussed investment needs, legal basis, financial mechanisms, mobilization of foreign capital, and other related issues to construct Cua Dai Bridge connecting Tien Giang and Ben Tre provinces, and Co Chien 2 Bridge connecting Ben Tre and Tra Vinh provinces, to complete the coastal road line of the Mekong Delta./.
Thanh Liem
