VIENTIANE, Nov. 4 (Xinhua) -- Lao Prime Minister Thongloun Sisoulith has endorsed a new decree to centralize the administration of Official Development Assistance (ODA).
Prime Minister Thongloun signed the Prime Ministerial Decree on the Administration of Official Development Assistance on Oct. 9, which was publicized later at the end of October, according to local daily Vientiane Times' Monday report.
According to the decree, the only state agencies authorized to approve the acceptance of foreign ODA are the central government, and the Ministry of Planning and Investment and the Ministry of Foreign Affairs. This means that all central and local state agencies that wish to accept offers of grants or concessional loans from international development partners must get approval from Lao central government or authorized state agency.
In the past, due to inadequate legislation, some state agencies, especially in local areas, accepted grants or borrowed money from development partners without the consent of the central authorities. As a result, some development projects were inconsistent with Lao government's policies while others created debts for the government, said the report.
The decree on ODA administration states that Lao government is in charge of approving ODA funded projects that involve multiple ministries and central state agencies, while Lao Ministry of Planning and Investment is in charge of endorsing ODA funded projects proposed by ministry level bodies.
Lao Ministry of Foreign Affairs is in charge of approving ODA funded projects proposed by international non-governmental organizations (NGO), associations, foundations, institutes, clubs as well as individuals.
In addition, the foreign affairs ministry has the authority to cooperate with other ministries to decide whether local associations are eligible to accept international grants to carry out development projects in Laos.
ODA must be used to finance development projects that are in line with the national socio-economic development plan, constitution and laws, the decree points out. Apart from that, the implementation of ODA funded projects must be transparent and auditable as well as compliant with agreements drawn up between the government and development partners.
The decree also specifies that state agencies which are authorized to implement ODA-funded projects must set up a committee to oversee project supervision and operation as well as project evaluation.
