Transport infrastructure is one of the areas with a low disbursement rate, according to Le Thi Huynh Mai, Director of the Department of Planning and Investment. (Photo: VNA) HCM City (VNS/VNA) - Ho Chi Minh City's authorities planto review obstacles to public spending and the speed of fund allocation anddisbursement this year.
Le Thi Huynh Mai, Director of the Department of Planning andInvestment, said the city spent 24.62 trillion VND (1.06 billion USD) last year,or only 85 percent of the allocation for public spending.
Transport infrastructure was one of the areas with a lowdisbursement rate, she said.
“The disbursement of public expenditure differed every monthwith large sums being disbursed during the final months of the year.”
Some projects are yet to complete investment procedures and arestill in the process of finalising costs or extending loan agreements, especiallyurban rail projects like the metro line No.1 between Ben Thanh Market inDistrict 1 and Suoi Tien Theme Park in District 9.
According to a report by the city government to the Ministry ofTransport, the city needs more than 83 trillion VND to execute 19 major trafficprojects this year, but has managed only 35 percent of the amount.
The main reasons for slow disbursement of public investmentinclude tardy land acquisition for some projects, delayed completion ofadministrative procedures and delays in completing investment procedures anddesigns.
Besides, many projects are allocated funds that cannot bedisbursed due to problems related to land acquisition and resettlement.
To speed up public spending the city has assigned the responsibilityfor the progress of projects to officials, whose performance will also beassessed by the rate of disbursement.
It will also review and classify projects that face obstaclesrelated to investment, construction and bidding procedures, land procedures andsite clearance and capital disbursement to promptly work out solutions.
It will also take away funds from projects with low disbursementrates and transfer them to projects with higher rates.
It requires projects to be completed this year to be sped upand final checks and payments to be made to contractors.
In the case of those to be completed after 2020, developers havebeen told to urge contractors to speed up construction, complete legalprocedures and carry out final checks of completed works to pay the contractorson time.
For new projects, developers need to prepare design documentsand cost estimates in accordance with regulations, select contractors andensure speedy construction, and speed up compensation payment and resettlement.
Developers must submit a feasibility report to competentauthorities for approval in accordance with the Law on Public Investment, theConstruction Law and others.
The Department of Natural Resources and Environment has beenordered to work with the Ministry of Natural Resources and Environment to speedup payment of land compensation and resettlement assistance.
Over the years public investment in the city has beenslow, seriously affecting socio-economic development, experts said.
It also causes loss of trust among investors and donors andnational prestige, they said.
It also results in rising costs, they added../.
VNA
