WB says Vietnam makes good use of its loans

WB says Vietnam makes good use of its loans

 Vietnam is one of the ten best countries in terms using their IDA loans, the World Bank said at a conference it jointly held with the Vietnamese Ministry of Planning and Investment in Hanoi on Wednesday.

An IDA loan is lending granted to poor and developing countries by the WB’s International Development Association.

WB officials also reminded Vietnam of the possibility of changing the project management board system to increase the effectiveness of money use.

Figures from the conference show that there are as many as 305 project management boards across the country, which are in charge of 51 WB-funded projects.

Of these, many boards have shown weak ability in developing research plans, and have failed to connect the objectives of the provinces and localities in the projects’ implementation.

Earlier this month the WB pledged to provide Vietnam with a US$4.2 billion loan in the 2012-2016 period, under its deals with the Ministry of Planning and Investment.

The lending aims to support reforms and key investments needed for Vietnam’s successful transition into a middle-income country, according to the WB’s Country Partnership Strategy (CPS).

The expected allocation from the preferential capital sources of the WB and its lending arm, the IDA, for Vietnam would be about 2.8 billion Special Drawing Rights (SDRs), equaling to $4.2 billion, in the new CPS period.

This will be the largest amount of capital ever granted by IDA to Vietnam, reflecting Vietnam’s performance as well as an increase in overall IDA resources, the WB in a statement.

Vietnam will also be able to access capital sources from the International Bank for Reconstruction and Development (IBRD) with an expected amount of about $770 million until the middle of 2014.

Since returning to Vietnam in 1993, the WB has provided nearly $14 billion worth of credits, loans and aid to help Vietnam sustain growth and fight poverty.

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