List includes projects facing long-term difficulties.
The World Bank (WB) has released a list of eight long-term problem projects in Vietnam within its Finance Portfolio.
Among others, the Vietnam-Hanoi Urban Transport project has had a problem status for five years, is seven years old and has a disbursement rate of 36 per cent. The Tax Administration Modernization project has had a problem status for 34 months, is 6.8 years old and has seen disbursement of 2 per cent, while the Vietnam Renewable Energy Development project has had a problem status for 27 months, is 5.2 years old, and disbursement stands at 29 per cent.
Others projects listed include the Financial Sector Modernization and Information Management System project, the Vietnam New Model University project, the Hospital Waste Management Support project, the Vietnam Industrial Pollution Management project, and the Vietnam Project Preparation Technical Assistance Facility project.
“There are a large number of problem projects,” Mr. Keiko Sato, Portfolio & Operations Manager at the World Bank Group, told its internal meeting on February 9. “They tend to stay in the problem status for a long time.”
Issues for problem projects include insufficient readiness for implementation (an incomplete feasibility study at the beginning, operational manuals not fully ready, no readiness for land clearance); agreements not fully reached on the details of project design and expected results; lack of/late allocation of reciprocal funding, especially for land acquisition and resettlement; unclear decision making authority leading to slow resolution of problems; and minor changes needing to be decided by senior level officials.
Vietnam is the fourth largest borrower of WB funds in the world. There are 52 WB financial projects in Vietnam, with a total commitment of $9.7 billion and an 18.6 per cent disbursement rate in fiscal year 2014.