WB supports policy reform to improve public investment

The World Bank approved US$ 350 million for Vietnam to improve its public investment reform structure by strengthening the four stages of investment: project selection, project implementation, financial management and overview.

A scene of Hanoi. WB approves US$ 350 million for Vietnam to improve its public investment reform structure (Photo: VH)

The project was planned for Vietnam’s Public Investment Reform in the midst of the 2009 global economic crisis and helped Vietnam avoid the adverse impact of the global economic crisis.

The Bank approved the first installment of US$500 million for the project in December 2009.

The overall goal of the program is to support a series of policy measures that will strengthen the management of public investment in Vietnam.

The program focuses in particular on the project implementation and financial management of public investments, including issues in environmental screening, transparency in bidding, conflict of interest, dispute resolution, environmental management, reporting and control, administrative costs, environmental budgets, payment and disbursement, subsidies and guarantees, monitoring and evaluation.

The program also facilitates infrastructure development in Vietnam by developing basic legal frameworks for public private partnership projects.

The major part of the financing (US$ 262.7 million) comes from the International Development Association – IDA – the World Bank’s concessional lending arm for low-income countries. The rest (US$ 87.3 million) comes from the International Bank for Reconstruction and Development – IBRD – the World Bank’s resource base for middle-income countries.

By Uyen Phuong

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