ADB, strengthening the role of Vietnam Resident Mission

Thứ hai, 20/5/2013 | 00:00 GMT+7
On May 10, 2013, a meeting to review the implementation of power projects which financed by the Asian Development Bank (ADB) was held at the headquarters of the Vietnam Electricity (EVN). ​
This is the first meeting which is joint organized by the ADB Vietnam Resident Mission (VRM) and EVN with the participation of representatives of the Ministry of Industry and Trade, Electricity Regulatory Authority of Vietnam (ERAV) Department regulation, EVN and all of the units in the power sector which have ongoing projects funded by ADB: National Power Transmission Corporation (EVNNPT), Northern Power Corporation (NPC), Generation Corporation 1, 2 (GENCO 1, 2); PMUs of thermal, hydro: Mong Duong, O Mon , Song Bung ... In addition, there are 02 representatives from ADB headquarters in Manila - Philippines attended.

 

 

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According to ADB collective data, as of the end of 2012, the list of projects funded by the ADB for Southeast Asia region is equivalent to USD 8.1 billion. Particularly in Vietnam, there are 111 ongoing projects, worth USD 6.774 billion, including 54 loans, 47 technical projects and 10 grants. List of projects funded by ADB for Vietnam accounts for 50% of the total portfolio of the Southeast Asia Department, and accounts for 13.7% of the entire portfolio of ADB, in which, the loan of Vietnam for energy sector accounts for one third of total loans from ADB. However, during the 2 recent years, ADB noticed the progress of projects in Vietnam has been slowdown. It even much slower than many countries in the region. Disbursement rate is also low. Hence, to accelerate the implementation of projects, ADB has collaborated with EVN to perform many synchronization solutions. One of the solutions is meeting to review the implementation of projects will be held quarterly. This was also the first quarter meeting of 2013.
 
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At the meeting, representatives of the units reported detailed the implementation of projects on all fields: compensation, site clearance, bidding, contract awards and disbursement, materials and equipment receipt, construction and installation as well as the difficulties and problems of each project. Overall, all projects encounter objectively and subjectively difficulties and problems. However, the most difficulty in the implementation of projects is compensation, site clearance, especially with the transmission lines passing through several provinces and cities. This is a complex task, requiring the coordination of multiple units, components while compensation policy, supports have  not unified, each locality has its own policy. These situation lead to the envy of households and they refuses to get compensation, do not accept the compensation rate, supporting for land, crops which are affected in the right of way. Moreover, many local governments have not really participated in the implementation of projects due to the thought that the project itself has not directly brought benefits for them ... In addition, many bad people take advantage of the policy in order to seek profit compensation in the form of large temporary houses built in foundation, right of way areas after investor has planted a landmark, measured land for proceeding site clearance and compensation procedures. In addition, the capacity as well as manpower of investors in the implementation of projects in some stages: preparing bidding documents, bid evaluation reports... still there are certain restrictions. Besides, agreement on bidding documents, bid evaluation results, disbursement procedures of the ADB is also eprolonged (bidding documents, bid evaluation results submitted by investors often get the feedback from ADB late). All these have affected significantly to the progress of projects.
 
Through the reporting of units, there was project which progress is very slow as O Mon 4 Power Thermal Plant. However, there were bright picture in the project implementation, typical is the Northern Power Transmission Expansion Sector Project - Loan 2225-VIE and the Corporation National Power Transmission (EVNNPT) is investor . According to schedule, it was expected during Quarter I 2013 EVNNPT would awarded contract equivalent to USD 18 million; disbursed USD 5.7 million. However, in practice, EVNNPT has awarded contract worth USD 20 million and disbursed USD 5.9 million. ADB recognized the efforts of EVNNPT in the past and requested EVNNPT to continue maintaining such progress and develop further to ensure timely completion of subprojects within the loan closing date.
Summarizing the meeting, all parties pledged to continue their close coordination, timely notification of difficulties arising in the course of project implementation, together discussion and finding out the most effective solution to solve the involved problems.

 Through
the meeting, VRM is more and more developing its role in the inspection, management, coordination with investors in the process of implementing projects funded by ADB in Vietnam in order to ensure the best result for both sides.

 

 

Dinh Thi Sen - International Cooperation Department
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