Forum of the 7th session, Nghe An Provincial People's Council: Proposing solutions for suspended projects and improving the Provincial Competitiveness Index

Remove suspended projects and slow-progress projects

Clarifying the situation of high raw material prices, causing the total investment to increase, the province and the sectors have solutions, the head of the provincial Planning and Investment sector affirmed that the current situation of increasing raw material prices is an issue that greatly affects the progress of implementation and disbursement of public investment capital in the current period.

Director of the Department of Planning and Investment - Mr. Nguyen Xuan Duc said that according to regulations, during the project preparation process, contingency costs were calculated to handle the problem of price increases. However, the excessive price increase, especially for items such as gasoline, iron and steel, which increased by 30 to 40% as at present, is an unforeseen problem. Therefore, it has affected many projects and timely solutions are needed to minimize the impact on the progress of implementation and disbursement of public investment capital.

The Director of the Department of Planning and Investment responded to the contents mentioned by the discussion groups and the meeting chair requested. Photo: Thanh Cuong

In response to this issue, the Provincial People's Committee issued Official Dispatch No. 4036/UBND-CN dated June 6, 2022 requesting specialized construction management departments and investors to closely review projects, fully assess the current status, and select the most suitable technical solutions to reduce costs while still ensuring quality. For cases where technical solutions cannot be changed, the Provincial People's Committee held meetings with relevant departments and investors and agreed on a solution.

Clarifying the content of the request for the Provincial People's Committee to focus on removing suspended projects and slow-progress projects, and not to prolong them, causing waste and tax arrears; according to the Director of the Department of Planning and Investment, suspended projects and slow-progress projects have been and are causing waste of resources, causing public outrage and affecting the province's investment and business environment.

To overcome and handle this situation, recently the Provincial People's Committee has directed departments, branches and localities to resolutely, systematically and effectively review, inspect and handle projects that are behind schedule.

Every year, departments, branches and localities conduct reviews and reports on projects showing signs of slow progress, violations of laws on investment, construction, land and tax arrears to synthesize and include them in the inspection plan of the Interdisciplinary Inspection Team according to Decision No.No. 25/2018/QD-UBND of the Provincial People's Committee.

Recently, the Provincial People's Council has had a program to monitor suspended projects in the province. Thereby, clarifying the current situation, causes of limitations, and requesting the Provincial People's Committee to direct the handling of suspended projects.

Delegates attending the discussion session in the hall. Photo: Thanh Cuong

Director of the Department of Planning and Investment informed: From 2012 to present, the interdisciplinary teams established by the Provincial People's Committee have conducted 674 inspections of 498 projects. Of which, 142 projects have been terminated, land recovered and legal documents annulled; 199 projects have been extended; 56 projects have been allowed to continue; 101 projects have been handled differently. Up to now, 225 projects have been terminated and land recovered with a total planning area of ​​120,821 hectares.

The work of reviewing and inspecting slow-progressing projects in the province has been and is being vigorously implemented by all levels and sectors. However, the situation of suspended projects and slow-progressing projects is still happening; many projects show signs of slow progress but have not been inspected and handled.

Analyzing the causes, the Director of the Department of Planning and Investment said: In the coming time, the Provincial People's Committee will continue to direct departments, branches and localities to implement solutions: Improve the quality of appraisal and investment policy advice for projects to ensure approval of feasible projects, effective land use, and investors with the capacity to implement the project.

At the same time, strengthen project management after licensing; departments, branches and localities implement regulations on coordination in investment project management. Strengthen administrative procedure reform, shorten the time for implementing investment procedures. Focus on removing bottlenecks in implementing investment projects, especially those caused by branches, levels and legal policies affecting investors.

At the same time, continue to prioritize investment capital to build infrastructure systems for socio-economic development; focusing on building infrastructure in the Southeast Economic Zone, industrial parks, and industrial clusters to create favorable conditions for investors.

“Implement the contents according to the results of the Provincial People's Council's thematic supervision of suspended projects, slow-progress projects and projects using land for the wrong purpose. In particular, focus on 3 main tasks: Develop and submit to the Provincial Party Committee Standing Committee for consideration and promulgation of a thematic resolution on handling suspended projects, slow-progress projects and projects using land for the wrong purpose in the province to serve as a basis for effective direction and implementation. Continue to review, inspect and handle slow-progress projects; Develop and put into operation the software for overall management of investment projects in the whole province" - Mr. Nguyen Xuan Duc emphasized.

Improving Provincial Competitiveness Index

Regarding the content of the Provincial Competitiveness Index (PCI) in 2021 falling in rank, the reason is the attitude of civil servants towards people and businesses. What solutions does the province need to have in the coming time? The Director of the Department of Planning and Investment said: According to the results of the Provincial Competitiveness Index (PCI) ranking in 2021, Nghe An achieved 64.74 points, ranked 30/63 provinces and cities nationwide, down 12 places compared to 2020, ranked 3rd in the North Central region (after Thua Thien Hue and Ha Tinh). The PCI index is assessed through 10 component indexes. In 2021, 5/10 indexes increased in score (including: Business support policies, Land access, Transparency, Informal costs, Legal institutions and Security and order), 5/10 indexes decreased in score (including: Market entry, Time costs, Labor training, Fair competition, Dynamism and pioneering of the government).

Checking administrative reform at the Department of Planning and Investment. Photo: Thanh Le

Of the 10 component indices, there are 2 indices related to the attitudes of officials and civil servants towards people and businesses, which are Time Cost and Informal Cost; in which: the Time Cost index decreased from 7.61 points (in 2020) to 7.54 points (in 2021), but is still higher than the national median (7.46); the Informal Cost index increased from 6.22 points in 2020 to 6.50 points in 2021, but ranked low compared to the whole country (ranked 51/63 provinces and cities).

In the coming time, to improve the service attitude of officials and civil servants towards people and businesses; contributing to improving the component indexes and total PCI score, it is necessary to focus on the following solutions:

Firstly, focus on improving the quality of the staff and civil servants performing tasks in positions related to processing and resolving documents for businesses and investors, both in terms of expertise and public ethics; pay attention to arranging staff and civil servants with good ethics and proper working attitudes to perform the task of guiding and receiving documents at the Public Administration Service Center, one-stop-shop, and inter-connected one-stop-shop at all levels.

Handling administrative procedures for people at the Nghe An Provincial Public Administration Service Center. Photo: Thanh Le

Second, strengthen supervision, inspection, and examination of public services to limit the situation of "hiding files", "returning files", causing difficulties and troubles for businesses... Resolutely handle cases of officials and civil servants causing harassment, with strict penalties as a deterrent. Timely, fully, and seriously apologize to individuals and organizations in handling administrative procedures for files that are overdue for processing.

Third, strengthen administrative reform, apply information technology in directing and operating public services and promote the implementation of level 3 and 4 public services to facilitate and shorten the time for handling administrative procedures for people and businesses, while limiting contact, causing inconvenience and difficulties for people and businesses.