Difficulties of ODA negotiators
The Japanese Ambassador said early this year, the Japanese government announced its intention to extend Vietnam ODA loans up to the total of JPY65.3 billion (over $700 million) for the first half of the fiscal year 2008 for infrastructure projects to improve transport and sewerage systems.
“All the relevant procedures of those projects, however, have been suspended due to the PCI corruption case coming to light,” he stated.
He said development of infrastructure remains a major priority for Vietnam. Japan has been working with Vietnam to help it to build up its infrastructure, including participating in the three major projects recommended to the Japanese government by Prime Minister Nguyen Tan Dung, namely the North-South speed railway, the North-South highway and Hoa Lac Hi-tech Park.
“It was most regrettable that there was a bribery case by a Japanese firm in connection with a Japanese loan assistance project in Vietnam. Following the grave incident, the two governments set up a joint committee to discuss concrete measures to be taken to prevent corruption related to Japan’s ODA for Vietnam. Until effective and meaningful measures against corruption are worked out through this joint committee, it will be difficult to regain the support of the Japanese public for further assistance for Vietnam, and we are unable to pledge new yen loans,” the Japanese Ambassador said.
Since resuming its aid for Vietnam in 1981, Japan has been taken the lead in granting ODA to Vietnam. Japan’s ODA accounts for 30% of international donors’ total committed ODA for Vietnam.
Key construction works in Vietnam built with financial assistance from Japan include Bai Chay Bridge in Quang Ninh Province, the new terminal of HCM City-based Tan Son Nhat International Airport, the East-West expressway, the Hai Van Tunnel, the thermo-power plants of Pha Lai and Phu My.
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