Rapid disbursement of public investment urged by year end

VOV.VN - The Ministry of Planning and Investment has proposed withholding investment next year for projects that had been slow to disburse their allocated funding in 2019.

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Construction on the urban railway project connecting Nhon and Hanoi train station (Photo: VNA)

According to the proposal, projects that had disbursed less than 50 percent of their assigned public investment as of November 30 this year would not be eligible for continued funding for next year.

According to the General Statistics Office, total public investment disbursement in the first 11 months of this year reached 299 trillion VND (13 billion USD), equivalent to 78.6 percent of the annual target and an increase of 5.5 percent compared to the same period last year.

However, the disbursement rate was assessed to have remained low.

The Ministry of Planning and Investment blamed the delays on a lack of proper planning and direction from ministries and local authorities.

Compensation for land clearance lacked transparency, leading to public complaints and delays.

Minister of Transport Nguyen Van The recently said most projects on the North-South Expressway had been delayed due to slow land compensation payments.

Nguyen Trung Hoang, vice chairman of the People’s Committee of Tra Vinh Province, one of the localities that recorded the slowest investment disbursement, said too many projects had been assigned to a single contractor, leading to overloading. 

The province had disbursed only 45 percent (about 2 trillion VND) of its total public investment for the year.  

According to Do Thanh Trung, deputy head of the Department of National Economic Issues at the Ministry of Planning and Investment, this year’s disbursement of Government bonds and Official Development Assistance had been slower than last year due to changing mid-term financial plans and other adjustments.

Major projects that took up almost 50 percent of Government bonds this year such as the North-South Expressway, Long Thanh International Airport and other transport infrastructure had recorded slow disbursement, affecting the allocation process for the whole country.

To accelerate the process with one month of the year left, Prime Minister Nguyen Xuan Phuc has ordered agencies to review and complete a legal framework on investment management, and to lift barriers to facilitate disbursement.

Public investment disbursement must be accelerated without wastefulness or loss. There was no room for corruption or group benefits, the PM highlighted.

The Government has instructed ministries, sectors and localities to impose strict punishments on individuals and organisations which delayed projects or tried to siphon off the top.

Weak officials who abused their power to direct public investment management and bidding must be replaced, he said.

The Ministry of Planning and Investment has proposed four solutions to accelerate the allocation, including holding heads of ministries, sectors and localities responsible for delays.

Economic expert Vu Dinh Anh told Vietnam News Agency that low-efficiency projects where investment procedures had not been set should not receive any more funding.

Investment should focus on efficient projects where we could speed up disbursement ahead of schedule to put them into operation, he said.

According to Minister of Planning and Investment Nguyen Chi Dung, the revised Law on Investment would facilitate public investment disbursement.

In 2020 when the new law takes effect, the improvements might not be immediately clear, but in 2021 we will start to see positive changes, he said.

VOV