| Subject: Re: Nho cac bac xem ho tu vi |
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test
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Date Posted: 20:51:16 07/27/05 Wed
In reply to:
Long Le
's message, "Nho cac bac xem ho tu vi" on 09:42:31 06/01/05 Wed
I The objective and context of the learning trip
May, from 9th to 16th, 2005, within the framework of the project “Improving ODA attraction and utilization capability” sponsored by Australian government, a mission including officials from Ministry of Planning and Investment, Ministry of Finance, VUSTA institute of management, has conducted a survey tour of learning ODA management experiences in the following Chinese provinces: Shanghai, Guangxi, and Guizhou.
1. The objective of the learning visit
+ Learning Chinese general experiences in attraction and utilization of ODA
+ Learning ODA decentralized administration experiences (especially, in the stages of project examination and approval) at the provincial level.
+ Learning the relationship between Public Investment and ODA Management systems in China.
2. The working program
May, from 9th to 12th, 2005
+ Having a working visit to Guangxi province reform and development commission.
+ Visiting to development planning exhibitions of Guangxi province and Nan Ninh city.
+ Visiting to two ODA Project Units (Lang Dong waste water treatment factory (French – AFD) and sewage treatment plant of Nan Ninh water supply company (Japanese JBIC)).
May, from 13th to 14th, 2005
+ Having a working visit to the reform and development commission of Guizhou province.
+ Visiting to ODA project (highway project – Japanese JBIC)
May, from 14th to 16th, 2005
Having a working visit to Shanghai
II. ODA attraction and administration situation in China – the case study of Guangxi Zhoang autonomous territory and Guizhou province.
Guangxi and Guizhou are two less developed provinces in China. The GDP per capita of Guangxi and Guizhou are USD 900-1000 and USD 500 respectively.
Both these provinces have emphasized the important role of ODA attraction and utilization in order to achieve their development targets.
1. The main donors and priority areas of ODA utilization.
There are main donors, namely Japan, France, Germany, UK, Belgium, Canada, Kuweit, Austria, Spain, North European Investment Bank.
The loans from WB and ADB are not considered as ODA resources by China.
ODA resources are used primarily in the following areas:
+ Traffic infrastructure development (railway, electrification of Nan Ninh – Kun Minh railway, Tan Hai national motorway)
+ Energy development (hydro power-stations in Thien Sinh Kieu, Dai Pho ...)
+ Water supply and waste water treatment (water supply plants in Tam Tan – Nam Ninh, Thanh bac (Que lam))
+ Facilities of environmental conservation, health care, education, culture and some industrial plants (chemical fertilizer Plant in Loc trai). Guizhou is the specific province in which there are a lot of military production facilities, so ODA utilization in cultural and educational areas is restricted.
2. ODA administration process
ODA projects are divided into three categories:
+ Investment projects of central government (Central government invests and take responsibilities for loans repayment)
+ Projects invested by local government and it takes responsibilities for loans repayment.
+ Projects invested by enterprises and they take responsibilities for loans repayment
Annually, State reform and development commission announces to the provincial reform and development commissions the resource attraction capacities of each ODA donor, capital resource conditions, characteristics of donors and priority orientations of ODA utilization.
Based on the socio-economic development program and local development planning for each sector, the provincial reform and development commissions guide to create project proposals and group them into the project list, suggesting to use ODA resources. With respect to investment projects in particular, and projects in general, China divides into three preparation stages:
(1) Establishing Project Proposal
(2) Performing Feasibility Study (FS)
(3) Performing Preliminary Design
Local reform and development commission has a prepared set of project proposals, needed ODA financing, examines and chooses the most appropriate proposals in order to make up the official project list, sending to the state reform and development commission and submitting to central government. Projects of all type (including loan-funded and projects without reimbursement) have to place in the project list and submit to government for approval.
After having the government approval for project proposals (including project objective, content, main articles, total investment capital and defined donor) in the submitted list, the local reform and development commission directs the executing agencies to perform feasibility studies, create preliminary designs (depended on project size and characteristics), simultaneously contact and conduct the negotiations with donors.
In the process of Feasibility Study performance, if total required ODA capital exceeds 10 % of the approved amount of ODA capital, the concerning agencies will have to submit to government again for approval.
In case ODA required total capital exceed the approved sum of ODA capital but less than 10 %, the concerning agencies have the right to continue carrying out the project but they have to inform about it to the state reform and development commission.
China has emphasized on the “strategical”, “leading” and “pattern” role of the ODA utilization projects, not chooses the “urgent” and short-term projects which government has promised to support. Concurrently, Chinese government very strictly manages debts to ensure that the debt ratio and the foreign debt ratio are in the safety limitation regarding to economic balance of provinces / autonomous territory.
After completing above-mentioned stages, project documents / feasibility studies of ODA utilization projects have to submit to government for approval, allowing to sign and carry out.
The provincial reform and development commissions are responsible for monitoring the ODA project performances in their administrative areas. Annually, in the end of June and December, the provincial reform and development commissions have to send the reports about ODA performance progresses to the state reform and development commission.
Recently, in February 2005, China has issued “the temporary investment management regulations of ODA resource utilization”, that has come into effect since May, 1st 2005, in which there has been emphasized on that all enterprises of all proprietary types may have access and get loan from ODA resources.
III experience lessons of ODA attraction and utilization
1. Planning problem and socio-economic development program
Provincial socio-economic development plan and development planning are built for the period of 5 years (including socio-economic development indicators, planning for traffic, urban, industrial, tourism development, etc), which are methodically prepared and widely publicized (in terms of regular exhibitions in public). It is possible to clearly collate the program / project indicators of the planned sectors in the period 2001-2005 with the real implementation progresses at the present moment. The public can appreciate the accuracy of the planning and real implementing situation of the constructions / projects specified in the planning.
The well-prepared and detailed development planning has been an important basis for choosing ODA capital utilization projects and effective attracting internal and external resources.
2. Taking the initiative in the preparation of ODA projects
Provincial reform and development commission co-ordinates with department of finance and concerning agencies on the basis of the provincial socio-economic development planning and ODA utilization priority sectors guided by central government, takes the initiative in research and preparation of projects (at level of project proposal / feasibility study). Based on the master plan implementation progress rate, the provincial authority chooses adequate projects for each development stage and submits to the state reform and development commission.
In the project selecting process, Chinese administration pays a special attention to project repayment capacity, executing agency implementing capabilities, including project preparation capacity and organizing capability of project implementation.
3. Focusing on project preparation stage and considering the donor procedure harmonization requirements
When the project has been placed in the national project list (approved by central government) the reform and development commission immediately guides to perform and approve the feasibility study as well as preliminary design. Chinese government clearly understands the importance of smooth co-ordination between two appraisal processes: inland appraisal and donor appraisal. Therefore, in the parallel with home project preparation and appraisal process, the reform and development commission initiatively consults with the donors and speeds up counterparts to take necessary steps in the appraisal process.
Chinese guideline has been formulated that “the feasibility study and preliminary design appraisal phases roughly match with the donor project appraisal progress rate, including pre-appraisal and final appraisal of the donors, try to ensure that the inland project appraisal always precedes that of the donors” taking the initiative in appraisal process and in negotiation with donors.
In the parallel with the project preparation and appraisal, the reform and development commission also will have to assess and examine the executing agency / project management board organizing capability of project implementation in the future, guide the needed preparation works for project implementation.
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