Nguyen Viet Thao, director of Phong Nha-Ke Bang project, said that Quang Binh had transferred Eur200,000 to the German Reconstruction Bank (KfW) at the bank’s request.

KfW provided this project with over 350,000 euros to plant forest in July 2009 and the project management board has disbursed EUR114,000, but no trees have been grown.

The bank asked the project management unit on several occasions to provide records showing disbursement of funds in 2009, but the board has evaded these requests.

On June 14, 2010, KfW sent a note to Quang Binh provincial authorities, the local Department of Planning and Investment, and the project management unit asking them to give back the remaining 200,000 euros that had not been disbursed. Quang Binh gave back the money.

However, KfW confirmed that this sum of money will be re-disbursed if necessary.

Quang Binh is implementing its commitments with KfW to regain aid, by putting an end to burning forests, enforcing protections of Phong Nha-Ke Bang national forest, and preparing for planting forest in 2010 at the requested speed.

Thao said that the province would also streamline the project management unit as soon as possible to meet KfW’s requirements.