From May 25, 2020, prioritize the use of ODA funds and concessional loans

Priority Usage of ODA Funds, Concessional Loans (Illustrative Image)

According to the provisions of Article 5 of the Decree 56/2020/ND-CP, non-refundable ODA funds are given priority for the implementation of programs and projects for the development of socio-economic infrastructure; capacity building; support for policy, institutional, and reform development; disaster risk prevention, mitigation, and adaptation to climate change; social welfare; project preparation or co-financing for projects using concessional loans to increase the concessional element of the loan.

ODA loans are prioritized for programs and projects in the fields of healthcare, education, vocational education, climate change adaptation, environmental protection, and essential economic infrastructure that do not have the ability to directly recover capital.

Concessional loans are prioritized for loan programs and projects for relending according to the legal provisions on relending ODA loans, foreign concessional loans of the Government of Vietnam; programs and projects within the scope of state budget expenditure tasks in the field of socio-economic infrastructure development.

Other priority cases shall be implemented according to the decision of the Prime Minister of the Government of Vietnam on Guidelines for attracting, managing, and using ODA funds, concessional loans from foreign donors according to each period.

Moreover, this Decree stipulates the methods of providing ODA funds and concessional loans include:

1. Program.

2. Project.

3. Non-project.

4. Budget support.

More details can be found in the Decree 56/2020/ND-CP effective from May 25, 2020.

Thu Ba

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