Projects using state capital: Promoting settlement of completed projects

(Baonghean) - The Ministry of Finance issued a document guiding ministries, branches and localities to make advances for contracts of projects using state budget capital, government bond capital and ODA capital paid in 2015 and the following years. With this document, it can be seen that in 2015, the legal corridor for project management, construction investment costs and construction contracts has been renewed, with the determination to promote the settlement of completed projects from state capital. Nghe An Newspaper reporter had an interview with Acting Director of the Investment Department (Ministry of Finance) Trinh Nam Tuan about this issue, respectfully introducing it to readers.

PV:Dear Comrade Trinh Nam Tuan, with this newly issued document, the Ministry of Finance is making efforts to promote the investment efficiency of public investment capital of state origin, right?

Acting Director of Investment Department Trinh Nam Tuan. Photo: SH

Comrade Trinh Nam Tuan:State capital includes: State budget capital, State development investment credit capital, Government bond capital, local government bonds, State-guaranteed credit capital, development investment capital of State corporations and single-member limited liability companies. In order to strengthen strict management of advance capital according to the provisions of Directive No. 1792/CT-TTg of the Prime Minister on strengthening investment management from State budget capital and Government bond capital, the Ministry of Finance has just provided guidance on advance payments for contracts of projects using these capital sources. Accordingly, the total advance payment for contracts of projects using State budget capital (domestic capital) and Government bond capital is maximum 30% of the annual capital plan, but does not apply to projects under the 2012, 2013, 2014 plans that are allowed to extend the implementation and payment period to 2015, as well as projects assigned capital plans from 2015 onwards. Special cases requiring advance payment at a higher level must be approved by the investment decision maker.

PV:It can be seen that in 2015, the Ministry of Finance also paid much attention to the settlement of completed projects for projects using state capital. Could you tell us the latest points about the settlement of completed projects?

Construction of the road from Do Luong district to Tan Ky. Photo: PV

Comrade Trinh Nam Tuan:In the settlement of completed projects using State budget funds, the Ministry of Finance has issued two circulars regulating the settlement process and settlement content. However, to simplify the search, ease implementation for the subjects of application, and reduce the number of legal documents, the Ministry of Finance is currently drafting a new circular on the basis of merging two old circulars, shortening the time for preparing settlement reports, auditing, reviewing and approving settlement; strengthening discipline and responsibility in the settlement of completed projects. This will help investors and project management boards access legal documents more easily with a document that both knows the process and knows the economic content.

In current documents, the Ministry of Finance stipulates that the subjects are investment projects using state capital. However, in the draft of the new Circular, this subject is "opened" more, adding more sources of state capital according to the provisions of the new Bidding Law such as: national bonds; official development assistance capital, preferential loans from donors; capital from the career development fund; loans secured by state assets; land use rights value.

In addition, the important innovation in this draft is the regulation to shorten the settlement time to speed up the progress of project settlement in accordance with the spirit of Directive No. 27/CT-TTg of the Prime Minister and in accordance with Article 29 of Decree No. 32/2015/ND-CP of the Government. Accordingly, the time for settlement approval calculated from the date of handover and putting into use includes the time for the investor to prepare the settlement report and the time to audit the settlement report (if any), so the time for reviewing and approving the settlement for each group of projects is shortened by 3 months compared to the previous regulations.

PV:Dear comrade, can we hope that the new legal corridor will help the settlement of completed projects using state budget funds to progress more and more, and the backlog of settlement will be pushed back?

Comrade Trinh Nam Tuan:Decree No. 112/2009/ND-CP of the Government previously stipulated the authority to approve the final settlement of important national projects, while other important projects decided by the Prime Minister for investment were approved by the Minister of Finance for the final settlement of component projects using state budget capital. Currently, Decree No. 32/2015/ND-CP of the Government has further decentralized the authority to approve the final settlement of component projects of important national projects using state budget capital, such as: assigning the superior management agency of the investor to approve the final settlement of component projects using state budget capital; the investor to approve the final settlement of component projects not using state budget capital. The draft new circular also clarifies the regulations on the superior management agency of the investor.

In addition, the draft also adds many regulations such as: not handing over projects to investors, project management boards with projects that are 24 months or more late in submitting settlement reports, and continuing to review and simplify administrative procedures and prescribed forms. Therefore, the forms have become simpler, more concise and more refined with necessary information for faster processing of business operations. The new draft circular will help the settlement of completed projects using state budget funds to progress, helping to push back the backlog of settlements as well as enhance the responsibility of units authorized to approve settlements.

PV: Thank you, comrade.

Red River

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