February 23, 2019 16:42

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Why does the transport sector still block investment capital disbursement?

11:26 | 04/02/2019

VCN- Disbursement of public investment in 2018 of the Ministry of Transport is estimated at 92.99% of the plan. This is the 3rd year in a row that the Ministry's disbursement rate has failed.

why does the transport sector still block investment capital disbursement In the first 11 months 2018, some ministries, branches and localities still have not disbursed foreign capital
why does the transport sector still block investment capital disbursement Removing shortcomings in disbursement of capital construction investment
why does the transport sector still block investment capital disbursement Public investment: resolutely adjust the capital of slow-moving projects
why does the transport sector still block investment capital disbursement
Regarding the public investment plan in 2019, the Ministry of Transport proposed to allocate VND 28,912 billion (out of a total of VND 36,645 billion announced in 2019) Photo: ST

Registration of demand is higher than actual ability

According to the review report on disbursement of the 2018 plan, deploying the 2019 public investment plan of the Ministry of Transport, it is expected that the disbursement capital in 2018 is estimated at VND 33,785 billion, only reaching 92.99% of plan. In particular, the capital out of the state budget will be disbursed 100% of the plan, equivalent to the disbursed capital of VND 10,000 billion; State budget and Government bond funds are expected to disburse 23,785 billion dong, reaching 90.3% of the plan.

Regarding final settlement of completed projects, the investors and the Project Management Board have prepared and submitted 39 state budget capital projects with a value of VND 26,812 billion, achieving 85% of the yearly plan and 7 BOT projects; agencies and units have appraised and approved 82 projects with the approved value of 54,151 billion VND, reaching 101% of the yearly plan. For BOT and BT projects, so far, the Ministry has approved the settlement of 62 completed and put into use projects.

Calculated according to capital sources, the results at the end of 1/2019 will be disbursed 100% of domestic budget capital; for foreign capital, it must be reduced by VND 1,835 billion; Government bonds must be disbursed for 1,130 billion dong to 2019. Thus, calculating the separate results of 2018, the disbursement of the Ministry of Transport has not achieved as expected.

According to Deputy Minister of Transport Nguyen Nhat, one of the causes for the slow disbursement of investment is the preparation of investment for projects implemented in accordance with the Law on Public Investment with many procedures. More than previous regulations, it takes more time, affecting the progress of projects.

At the same time, Deputy Minister Nguyen Nhat also affirmed that the disbursement of foreign capital also had differences in bidding procedures and procedures according to domestic and donor regulations; differences in the fiscal year; regulations on minimum capital level are allowed to carry out payment procedures, procedures for recording capital have been implemented ... Clearance work of complex projects, prolonged problems affected the progress construction level.

Besides, one reason is due to investor units, the Project Management Board registered the plan needs higher than the actual capacity due to optimism on the implementation ability of the project without prediction of difficulties and obstacles when implementing bidding procedures, site clearance compensation, works incidents, adverse weather conditions ... In addition, according to the provisions of the Law on Public Investment , the disbursement time of the annual plan is extended to the following year, so the units have the psychology of building disbursement needs at high expectations (the amount of disbursed capital will be extended and disbursed next year).

"In the process of executing and implementing projects, some units have not yet monitored, strictly managed the total investment, the cost of implementing investment projects which have not actively and promptly reviewed the needs for capital to implement the project, determining surplus capital in the project implementation process to promptly report difficulties and problems, proposing regulation, adjusting the plan to meet actual disbursement needs," Deputy Minister Nguyen Nhat emphasized.

Handling definitely from the beginning of the year

Regarding the public investment plan in 2019, the Ministry of Transport proposed to allocate VND 28,912 billion (out of a total of VND 36,645 billion announced in 2019). Specifically, on foreign capital, the Ministry of Transport proposed to make a plan for 2019 of VND 9,775 billion for 51 ODA projects. In particular, the immediate proposal is to immediately arrange VND 5,847 billion for projects as of the end of 2018 and the medium-term plan for the period of 2016-2020 has been assigned. The remaining VND 3,928 billion will be planned after completing procedures for regulating, adjusting and using 10% of the medium-term public investment plan provision and adjusting the 2016, 2017 and 2018 plans that have not been used up.

Regarding domestic budget capital, the Ministry of Transport also proposed to record 2019 plan of VND 6,536 billion, of which 3,354 billion is reciprocal capital for ODA projects; VND 3,040 billion for 13 domestic transportation projects, mainly to pay outstanding debts for basic construction and to complete before the plan; VND 122 billion of basic capital and VND 20 billion for 5 projects outside the traffic.

In future, the Ministry of Transport proposed to immediately arrange VND 5,274 billion for projects as of 2018 and the medium-term plan for the 2016-2020 periods has been assigned. The remaining VND 1,262 billion of ODA reciprocal capital will be planned after completing procedures for regulating, adjusting and using 10% of the medium-term public investment plan provision.

Regarding Government bond capital, the Ministry of Transport proposed to record 2019 plan of VND 12,601 billion. Of which VND 1,661 billion for 20 projects using capital of National Highway 1 and Ho Chi Minh Road projects running through the Central Highlands; VND 7,062 billion participated in 11 North-South expressway projects in the East; VND 3,878 billion for 14 critical railway and road projects using medium-term reserve sources.

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Evaluating the results of investment disbursement in 2018, Minister of Transport Nguyen Van The said that, in order to continue implementing effectively the medium-term public investment plan for the period of 2016-2020 and the plan for 2019, the problems in the disbursement plan should be withdrawn from experience, dealing thoroughly from the first days and months, right after being assigned the annual plan. In particular, speeding up the progress, disbursement progress of projects with capital sources, especially national key projects, important projects of the industry; accelerating construction progress, completing to put projects into operation, ensuring efficient use of investment capital. At the same time, actively review and summarize and report to the Prime Minister, relevant ministries and branches to supplement (or advance the plan) for projects, especially counterpart funds for ODA projects to meet progress.

Besides, it is necessary to review and develop implementation plan, detailed disbursement associated with specific progress milestones (project approval, bidding, site clearance, signing contract advance, exam construction and installation ...) for each project for the remaining years of the 2016-2020 medium-term plan, especially with ODA projects, the North-South expressway projects in the East, and projects, important railways, roads ...

By Xuan Thao/ Bui Diep