Nghe An proposes to cut and return to the budget over 101.2 billion VND of foreign loans

The conference was chaired by Mr. Truong Hung Long - Director of the Debt Management Department, Ministry of Finance. Also attending were representatives of the Departments and Divisions under the Ministry of Finance and 6 foreign development banks.

From Nghe An bridge, comrade Bui Dinh Long - Vice Chairman of the Provincial People's Committee chaired the conference. Also attending were representatives of the Provincial Treasury and relevant departments and branches.

Comrade Bui Dinh Long - Vice Chairman of the Provincial People's Committee chaired the online conference on accelerating the disbursement of public investment from foreign loans from Nghe An bridge. Photo: Nguyen Hai

At the conference, representatives of the Debt Management Department,Ministry of Financesaid: Based on the loan capital allocated by the Government (after adjustment) for 2020 of 34,038 billion VND, as of November 30, 2020, localities have disbursed 13,846 billion VND, reaching 41% of the assigned estimate. Compared to the first 6 months of the year, thanks to continuous inspection and supervision solutions,disbursement progressThe last 5 months of the year saw more positive changes when many localities achieved a disbursement rate of over 50% and 4/63 provinces and cities achieved a disbursement rate of over 80%.

However, the disbursement rate in general is still quite low and has many problems; with only 1 month left, the disbursement rate in many localities has only reached 15-20%.

The Do Luong Bara Dam project was constructed from public investment capital, which is a loan from the JICA project (Japan). Photo courtesy

InNghe An, on the basis of public investment capital from foreign loans in 2020 assigned at 397.6 billion VND and 265.6 billion VND/5 programs and projects from 2019, the province has active implementation solutions.

As of November 31, 2020, the province hasdisbursement206.05 billion VND, reaching 51.82%. In addition, the source from 2019 was assigned to be supplemented to 2020, the province has disbursed 141.05 billion VND, reaching 53.09%. If including the capital of 56.01 billion VND that could not be disbursed so the province proposed to return it to the Central budget, Nghe An achieved a disbursement rate of 67.27%; regarding the disbursement of re-loaned capital from the Government's foreign loan source, the province disbursed 45.925 billion VND/plan of 134 billion VND.

Phan Boi Chau High School for the Gifted is one of the units invested in to develop education, but due to the bidding procedures, the disbursement is slow and it is recommended to extend to 2021. In the photo: Practical lesson of teachers and students of Phan Boi Chau High School for the Gifted. Photo: Document

Participating in the online conference, in addition to presenting the results of loan disbursement, Nghe An proposed that, in order to strive for 100% disbursement in 2020, the province proposed to cut and return to the central budget over 101.2 billion VND due to no need for disbursement, including the additional capital plan in 2019 transferred to 2020 and re-borrowed capital from the Government's foreign loan source. By pointing out a number of difficulties and obstacles in bidding and site clearance, the province also proposed to transfer the source to implement revenue and expenditure recording phase II of the Nghe An Obstetrics and Pediatrics Hospital project; proposed to allow extension of disbursement time for the project of High School Education Development Program Phase 2 of Phan Boi Chau Specialized High School.

Representatives of Nghe An departments and branches followed the online conference to urge the disbursement of public investment using foreign loans in November. Photo: Nguyen Hai

Based on the opinions and proposals of localities, the representative of the Debt Management Department, Ministry of Finance said that they will continue to recommend the Government and ministries and branches to urge. There is not much time left in the 2020 fiscal year, the Debt Management Department recommends that localities need to strengthen drastic direction to increase the disbursement rate; at the same time, localities should consider proposing a plan to extend the disbursement period in 2020 and develop a disbursement and loan allocation plan for 2021./.