The World Bank and the State Bank of Vietnam July 15 signed a credit of USD$ 100 million to create the Project Preparation Technical Assistance Facility Project, which will aim to speed up and improve the preparation phase public projects and curtail implementation delays that have become commonplace.
Public investments in Vietnam generally, and infrastructure investments in particular, often face difficulties in keeping to schedule and are frequently delayed.
By the end of 2008, US$11 billion in funds from the Official Development Assistance (ODA) not yet been disbursed, and this figure could well increase unless project start-up delays are substantially reduced. This delay in investment implementation deprives the Vietnamese economy of substantial economic and social benefits.
As development projects will continue to be in high demand in all economic and social sectors, this new program has been designed to improve quality at entry, shorten preparation periods and increase the capacity of government agencies and the national consulting industry to produce project preparation documents of good quality within an acceptable timeframe.
“By improving the speed and quality of preparation work, the project is expected to accelerate project start-up and disbursements, thus enabling beneficiaries to quickly realize the economic and social benefits from investments supported through the project,” said Victoria Kwakwa, the World Bank Country Director for Vietnam.
The project is expected to be implemented from October 2010 to October 2015. Funding for the project comes from the International Development Association (IDA), the World Bank’s source of funding for low-income countries.