Under the program from now to 2020, 48 provincesand cites experiencing budget shortage will have better financial resources to speed up the disbursement of funding (approx. 2,4 billion USD) from International donors.
The program also includes the government provision of another 308 million USD of counterpart fund to finalize 300 projects originally implemented during the period 2011-2015, which are now set to be completed in period 2016-2020.
The program contemplates kicking off critical projects for the period 2016-2020 already having donors funding and projects left unfinished from the period of 2011-2015 now set to be completed in 2016-2020 will be allocated 132 million USD worth of counterpart fund.
The total funding for this program amounts to more than 400 million USD sourced from the state budget which is subject to adjustment when new ODA projects take off or new financial sources is found. The principles for allocating counterpart funds from state budget is based on the Decision No.40/2015/QD-TTg dated September 14, 2015 of the Prime Minister.
As such, counterpart funds will only be allocated when the amount is deemed sufficient for the project life cycle and within the medium - term investment plan of the period 2016-2020. The annual plan to allocate counterpart funds shall not exceed the estimated cost stated in the medium term investment plan. At the same time, the counterpart fund must be allocated sufficiently and timely in accordance with the progress of ODA project.
The priority for counterpart funds allocation is based on the the remaining time needed to complete projects. The effciency of counter-capital is assessed based on the implementation of the 300 ODA projects left from the 2011-2015 period.
However, counterpart funds provided by the government only cover a part of local need of counter-capital for locally managed ODA projects. Therefore, during the implementation process, provinces and cities must act upon the situation and mobilize other financial resources to ensure the projects to be on the track. It is also the responsibilities of provinces to manage the funds efficiently and on target, in turn speed up the ODA funds’ disbursement progress.
All administrative agencies related to the program from central to local level must increase the efficiency in operation and improve cooperation between agencies to better define the responsibilities and issues arose during the implementation process, the program stipulated.