[Exclusive] Overseas Aid Project Worth 50 Billion Won Had No Contract Even

[K Wonjo Tracker]②
Numerous Budget Executions Without Government Agreements First

The government has spent a total budget of 4.723 billion KRW under the name of Official Development Assistance (ODA) to Myanmar, Colombia, and Tajikistan, despite not having signed any intergovernmental aid agreements (Records of Discussions) to date. This is interpreted as a glimpse into the poor cases of grant aid in the 'blind spots of monitoring.' In the case of the Korea Institute for Advancement of Technology (KIAT), an agency under the Ministry of Trade, Industry and Energy, it spent an ODA budget worth 50 billion KRW since 2017 before signing any Records of Discussions.

On the 25th, an analysis of the Board of Audit and Inspection’s report on ‘The Actual Conditions of ODA Project Implementation’ and the requested data submitted by the office of Lee Jong-bae, a member of the People Power Party, from KIAT revealed that KIAT executed budgets for 39 ODA projects before signing the Records of Discussions (RD).

The requested materials received by Rep. Lee Jong-bae of the People Power Party from the Korea Institute for Advancement of Technology

The Record of Discussions is a document equivalent to a Memorandum of Understanding (MOU) in international development cooperation. Although it is not a legally binding ‘treaty’ or ‘agreement’ between countries, it holds the effect of an ‘agreement’ exchanged between institutions. International aid agencies, including the Korea International Cooperation Agency (KOICA), select implementing agencies and execute aid budgets only after signing the Record of Discussions. The Record of Discussions details the project’s purpose, duration, sector, support from the donor country, and obligations of the recipient country, all signed by the institutions involved. If budgets are spent without a Record of Discussions, there is no basis to respond if the recipient country abandons the project midway or refuses to accept equipment.

In particular, five projects ? ▲Tajikistan Sughd and Gorno-Badakhshan solar power generation and ESS construction project, ▲Colombia Fondores region eco-friendly energy electrification support project, ▲Myanmar Agricultural Machinery Industry Technology Development Center establishment project, ▲Myanmar energy self-sufficient village construction project, and ▲Myanmar LED lighting infrastructure support project ? have yet to sign the Record of Discussions as of September 27, 2023.

The Peru smart distribution network construction support project had its implementing agency designated in 2017, but the Record of Discussions was signed two years later (798 days) in 2019.

The Tajikistan solar power project also spent 275 million KRW on travel expenses and 136 million KRW on other costs in advance without signing the Record of Discussions. The Colombia Fondores region eco-friendly energy electrification project paid 147 million KRW in personnel expenses, 41 million KRW in travel expenses, and 67 million KRW in other costs before the Record of Discussions was signed.

Additionally, the Myanmar Agricultural Machinery Industry Technology Development Center, energy self-sufficient village construction, and LED lighting infrastructure support projects have not yet signed the Record of Discussions. Although the resumption of these three projects is uncertain due to the Myanmar military coup, budgets of 436 million KRW, 2.627 billion KRW, and 994 million KRW respectively have already been spent.

Lee Jong-bae, a member of the People Power Party, emphasized, “This ODA is a representative case of budget waste caused by hastily pushing forward projects without even signing agreements despite being intergovernmental aid projects. The practice of routinely spending budgets such as personnel expenses without review or a Record of Discussions must not be repeated.”

■Infographic Page■

Solar Power and Firewood - Vietnam Ban Laokon Report

(story.asiae.co.kr/vietnam)

What problems does splitting aid budgets cause?

(story.asiae.co.kr/ODA)

This project was supported by the Press Promotion Fund, funded by government advertising fees.

This content was produced with the assistance of AI translation services.