Asian Development Bank (ADB) will be actively looking into co-financing opportunities

Hanoi (VNA) – The Asian Development Bank (ADB) will be actively looking into
co-financing opportunities, public private partnership, use of guarantees and other
innovative possibilities for Vietnam in the future, affirmed its President
Haruhiko Kuroda.

ADB President Haruhiko Kuroda made the affirmation at an interview with Vietnam+
on the sidelines of the 14 th ASEAN Finance Ministers’ Meeting that concluded
in Nha Trang city of the southern coastal province of Khanh Hoa on April 8.


The ADB official said the bank considers “resource mobilisation” as one of its
important roles in its strategy 2020.

“We will be working closely with many development partners so that our
development partners' resources can be brought in the form of co-financing. We
will also work closely with the private sector to seek greater opportunities for
public private partnership, particularly in the area of infrastructure
development. In response to the global economic crisis, we also worked with
private sector banks in the area of trade financing and use of guarantees will
also be actively pursued. There are also resources being made available
particularly in the area of climate change in the international community and we
will help ASEAN countries in general and Vietnam in particular to tap such
resources as well.”

According to Kuroda, in 2009 the ADB mobilized more than 2 billion USD of new
resources for Vietnam , including 500 million USD in special assistance under
the Countercyclical Support Facility set up to help countries affected by the
global crisis, and 375 million USD in guarantees for private sector loans.

Regarding the disbursement rates and overall effectiveness of ODA in the country,
the ADB President said that the efficient utilisation of ODA is a challenge for
Vietnam . “Simplification of the system will not only make the process faster,
but will also allow greater scope for delegating responsibilities to line
ministries and provinces, as well as supporting greater transparency,” Kuroda
said.

For its part, ADB has introduced new streamlined business processes this year,
designed to simplify and speed up its work, he said, adding that he hoped
Vietnam will take full advantage of these new procedures, which could,
potentially, provide scope for innovation in its own systems.

He said the nation’s progression from a low-income country to a middle-income
country will, change the nature and the composition of its ODA, with some donors
expected to phase out their grant-based operations.

But there will be an increasing need for investment in infrastructure development
and as it is rolled out, so the amount of assistance in the sector that is likely
to grow, he said.

“In the case of Vietnam , ODA is not really a major chunk of its GDP. For a
100 billion USD economy, 8 billion USD in committed assistance and 4 billion USD
in actual disbursements is modest,” Kuroda said, at the same time expressing his
belief that ODA has been effective in supporting the country's development. He
said assistance efforts in the future will focus on supporting the government to
mobilise more resources from the private sector for the country's development
needs.

Discussing sustainable development for the ASEAN, the ADB chief said that it is
increasingly important to consider ways to achieve a functioning ASEAN Economic
Community by 2015. A single market and production base can make ASEAN a highly
competitive global economic region. It would reduce transaction costs and enhance
the investment climate. To do so, ASEAN must strengthen its institutional
architecture and bridge the development gap among its members.

He said the Chiang Mai Initiative Multilateralization (CMIM) is a positive step
forward for the region, much more must be done, not only in the financial sector,
but also in areas such as trade and investment.-Enditem





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