02 Forms of Using ODA Funds and Concessional Loans for the Private Sector

Form of using ODA funds, concessional loans for the private sector (Illustration)

In accordance with the policy of providing ODA funds, concessional loans from foreign donors, the private sector is accessible to ODA funds, concessional loans. Decree 56/2020/ND-CP stipulates the forms of accessing and utilizing ODA funds, concessional loans for the private sector as follows:

- Accessing ODA funds, concessional loans utilized by ministries, central agencies, and provincial People's Committees as project preparation funds and bidding support for selecting investors, the state's participation in PPP projects in accordance with the current laws on PPP and specific international treaties and agreements on ODA funds, concessional loans.

- Accessing and utilizing ODA funds, concessional loans through participation in programs and projects supporting the private sector by the managing agency.

Additionally, Decree 56 stipulates the authority to decide investment policies for programs and projects using ODA funds, concessional loans as follows:

First, the authority to decide investment policies for national target programs, important national projects, and public investment programs using ODA funds, concessional loans is implemented according to Clauses 1 and 2, Article 17 of the Law on Public Investment.

Second, the Prime Minister of the Government of Vietnam decides investment policies for the following programs and projects:

- Programs and projects using ODA loans and concessional loans, excluding programs and projects specified in Clause 1 of this Article;

- Programs and projects using non-refundable ODA funds in the following cases: Category A and Category B programs and projects; programs and projects with policy frameworks; programs and projects in the fields of national defense, security, religion; sectoral access programs; procurement of goods that require permission from the Prime Minister of the Government of Vietnam; Vietnam's participation in regional programs and projects;

- Technical assistance projects using ODA funds, concessional loans from foreign donors to prepare investment projects.

Third, the head of the managing agency decides investment policies for programs and projects using non-refundable ODA funds in Category C.

Refer to other regulations in Decree 56/2020/ND-CP, which takes effect from May 25, 2020.

Thu Ba

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