How long does it usually take donor

How long does it usually take donors to decide if they start the project or not after they
receive a project proposal? This duration varies. In one case, it took around one year,
and in other cases, it has taken four to ten years, however, this time period does appear
to have shortened recently. There are a number of reasons for these decisions taking
such a long time. Firstly, it depends on the completeness of the project proposal the
Vietnamese side has developed and submitted. After the counterpart agency on the
Vietnamese side submits the project proposal to a donor through the MPI, a donor
sometimes makes comments and then the counterpart agency revises it based on these
comments. This process can repeat several times. Consequently, this process often takes
a long time to finalize a project document. This can result due to the poor quality of the
project proposal, which is often rooted in the low ability of the recipient agency to
develop a proposal which meets the expected standards of the donor. If the project
proposal is not well developed initially and if its approach to solve the problems are not
appropriate, it is inevitable that the recipient agency is forced to make numerous
alterations until the quality of documents meets their expected standards. In the case
above, the donor side may have needed to assist the recipient agency draft the
documents. In some cases, consultants themselves become a factor in prolonging the
process. Despite a lack of understanding of the situation in Vietnam, consultants try to
develop a document without respect for suggestions given by the Vietnamese side. As a
result the Vietnamese side fails to agree to the document produced. It also brings about a
delay at the project preparation stage. Secondly, the complicated procedures of appraisal
and approval at the donor side underlie this kind of transaction cost. Thirdly, the delays
are rooted in the financial and human resource constraints of the donor. Even if a donor
receives a project proposal that fulfills a donor’s aid strategy, priorities and criteria for
Vietnam, a donor cannot always start it due to resource constraints. In this case, it is
likely to be an unavoidable reason.