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Preferential Credit Used To Promote Rural Water Program

11 May 2012 | 02:12:00 PM

In the framework of the national week on clean water and environmental hygiene from April 29 to May 6 in 2012, the Water Resources Management of the Ministry of Agriculture and Rural Development Deputy Director General Ha Thi Thanh Hang said preferential credit from the Vietnam Bank for Social Policies (VBSP) had been key to effectively and successfully implement the program.



 
The program has contributed significantly to the rural reform, improving water supply conditions. This program has had the participation of all levels, sectors and communities. However, there are still difficulties and problems requiring the contribution of the whole community.
What are the shortcomings in the program implementation?
Besides the achievements, some problems still exist, such as the target of rural environmental hygiene has been limited due to the institutional inadequacy and the insufficient supporting level.
Many provincial steering committees have inefficiently operated and the coordination between sectors such as health, agriculture and education has not been regular and lack of initiative. Resources receiving the Government's priorities for funding but compared to the demand, they were not met, especially in remote areas.
In addition, the program has also been strongly affected by climate change. Therefore, many projects ensured the clean water supply, whereas the water cannot be guaranteed, leading to pollution, loss out and exhausted situation.
The Prime Minister recently has approved the program in the period 2012-2015 with the goal of about 85 percent of rural population using hygienic water, 100 percent of preschools and schools, commune health stations in rural areas having clean water in 2015. What are the solutions to achieve this goal?
There are many solutions due to Decision 366 issued by the Prime Minister. The first is to promote socialization and development of clean water markets in line with economic conditions in Vietnam. However, the socialization has to suit with each region. In particular, it is necessary to have adequate policies to promote internal power of the society. The priority given to poor areas is expressed by the priority of investment resources and training to improve the capacity of management and operation.
This is the overall program of Vietnam but the localities have to build to suit for their economic development target. Besides, it is necessary to increase accountability of the government, departments and organizations at all levels as well as promote international cooperation to exchange experiences, share information, transfer technology and raise refundable aid capitals and preferential credit loans.
Besides, other solutions are to increase community participation; create a favorable and equal opportunity to help people to benefit and positively participate in. The implementation must be closely associated with the implementation of basic democracy and the meetings must be encouraged to organize in villages.
The total capital is about VND27.6 trillion, including capital from private and public citizen of VND3.1 trillion and the remainder from other sources. Are there any difficulties in the mobilization of private and public citizen capital?
The planned capital in the 2012-2015 period total about VND27.6 trillion, of which the central budget is VND4.1 trillion, the local budget stand at VND3.1 trillion, international aid is worth VND8.2 trillion, the preferential credit capital reach VND9.1 trillion and the capital from private and public citizen is VND3.1 trillion.
The contribution of capital from private and public citizen and preferential credit total VND12.2 trillion, accounting for over 45 percent. This program improves the quality of life, whereas, the deployment in rural areas and remote areas is difficult. Therefore, it is necessary to enhance socialization, attract the participation of all private and other economic sectors as well as non-governmental and international organizations. In addition to foreign donors such as WB, JICA, ADB, the program also receives the participation of 22 international organizations.
This is also the target that the Ministry of Finance and Ministry of Planning and Investment aim at. If this target depends on the state budget, it will difficult to accomplish this goal in the drive toward efficiency and sustainability.
How do you assess the effectiveness of credit capital on this program?
Preferential credit capitals from the Vietnam Bank for Social Policies (VBSP) had been used to effectively and successfully implement the program. This has been highly appreciated by international organization and considered as successfully lessons and experiences for Vietnam.
These experiences and lessons of Vietnam are known how to use and exploit credit for this area. This is a success in using and strengthening the participation of citizens to this credit capital. In the next period, it is necessary to continue exploiting this capital for the development of program.
In addition to supporting household for accessing to credit capital through the VBSP, it is necessary to consider households who access to credit capital of the Vietnam Development Bank.
Thuy Nga - Tien Dung
 
(MONRE)
 
 
 

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