The “Green Urban Development for Climate Change Adaptation in Nga Bay City, Hau Giang Province” project funded by AFD (the project) was approved by the Prime Minister’s project proposal in April 2022, and the Hau Giang Provincial People’s Committee approved the project in November 2023. The project has a total investment of over 1,211 billion VND, from AFD loan capital, non-refundable ODA capital, and matching funds from the local budget. The implementation progress is from 2023 to 2026.
The project has met the requirements to be included in the medium-term public investment plan for the period 2021-2025. Hau Giang province has uploaded project data to the national information system and database on public investment. The Ministry of Planning and Investment is compiling recommendations for the Government to submit to the National Assembly at the nearest session…
However, according to the provisions of Article 36 of the Public Debt Management Law, the project has not been approved in the medium-term public investment plan for the period 2021-2025, and it does not meet the conditions for appraisal for borrowing. Therefore, the Ministry of Finance has not submitted to the Prime Minister to request negotiations and signing of loan agreements.
A corner of Nga Bay City. Photo: CK.
According to the Hau Giang Provincial People’s Committee, through working sessions with related agencies, it is known that the procedures for including the project in the medium-term public investment plan for the period 2021-2025 have been fully prepared by the Ministry of Planning and Investment and are expected to be submitted to the National Assembly at the May 2024 session. In order to complete the procedures in accordance with the regulations, it is expected that the negotiations and signing of the agreement can be completed in July this year.
Therefore, the project needs to have a resolution of the National Assembly to supplement the project in the medium-term public investment plan of the central government for the period 2021-2025 in order to proceed with the appraisal of the borrowing and repayment plan of the province. This means that the expected signing date of March 31, 2024, will not be feasible.
Therefore, Hau Giang Provincial People’s Committee proposes AFD to consider extending the signing date of the agreement until July 31, 2024, to ensure that the project has enough time until the National Assembly has a resolution to supplement the project in the medium-term public investment plan for the period 2021-2025. At the same time, technical negotiations will be conducted in March 2024.
Hau Giang Provincial People’s Committee also proposes to maintain the current interest rate until the expected signing date of July 31, 2024. This will help the province have additional resources to support the project, reduce the costs of the project, and avoid having to redo the procedural processes when the interest rate changes, which takes a lot of time.
The project includes elements such as reducing flood risks, improving wastewater management and environmental sanitation, renovating and upgrading urban areas, and developing public spaces…
