Nghe An tightens management of public investment.

(Baonghean) - Evaluating the results of the public investment restructuring implementation in the 2014-2016 period, the Department of Planning and Investment noted that the management of investment from the state budget and government bonds in Nghe An province has been increasingly improved, and policies to attract and mobilize other sources of capital for investment have been emphasized.

Avoid scattered investments.

In implementing Decision 339 of the Prime Minister on approving the overall plan for economic restructuring associated with the transformation of the growth model for the period 2013-2020, the Provincial People's Committee issued Decision No. 3278 promulgating the action program to implement the Government's plan. After 3 years of implementation, Nghe An province has achieved significant results.

Mr. Nguyen Van Do, Director of the Department of Planning and Investment, stated: In implementing Government Resolution 11/NQ-CP, Prime Minister's Directive 1792, and the Law on Public Investment, the Provincial People's Committee and local authorities have suspended or postponed many inefficient and unfeasible projects to focus capital on completed projects, key projects, and urgent projects.

The issuance of investment policies during the 2014-2016 period decreased significantly compared to previous years, and the number of new projects started was very low.

Construction of Nghi Thiet Port (Nghi Loc).

"In previous years, the central government's decentralization mechanism was more flexible, especially in 2008-2009 during the economic downturn. The government implemented a policy to stimulate investment, leading to a significant increase in capital. Consequently, many investment projects were issued, resulting in numerous unfinished projects and new projects requiring very large amounts of capital, far exceeding the province's ability to mobilize resources."

"As of the end of September 2014, 1,092 investment policies had been issued with a total investment of VND 33,424 billion. By October 30, 2016, there were 801 projects remaining, with a total investment of over VND 16,000 billion," the Director of the Department of Planning and Investment shared.

Socialization of investment

Every year, in implementing the Provincial People's Council's resolution on mobilizing capital for development investment, the Provincial People's Committee has developed many policies to attract investment capital. Investment promotion has been emphasized, resulting in an increase in the total amount of capital mobilized annually.

In particular, the proportion of investment from state capital through the provincial budget compared to total social investment is gradually decreasing in accordance with the spirit of Decision 339 approved by the Prime Minister. In addition, the rate of mobilizing non-state capital for projects in the province is trending upwards.

In implementing Directive 1792/CT-TTg on strengthening the management of investment from the state budget and government bonds, Nghe An province issued Directive 25/CT-UBND to implement it throughout the province. The annual capital allocation process prioritizes debt repayment, and the issuance of investment policies is strictly controlled.

The project implementation process adheres to the principle that only the planned capital allocation can be used, prohibiting contractors from advancing funds for construction. Therefore, the number of newly started projects tends to decrease, while the number of completed projects within the year gradually increases.

In 2013, the number of new projects was 120 (a decrease of 45.7% compared to 2011). In 2014, the number of new projects was similar to 2013; in 2015, 95 new projects were started, and in 2016, 21 new projects were started. The new projects in the 2014-2016 period were mainly policy projects such as infrastructure in border communes, market systems, infrastructure for craft villages, commune headquarters, etc.

The successful mobilization of social investment capital and the reform of allocation during the 2014-2016 period have significantly transformed the province's socio-economic infrastructure. Numerous irrigation and clean water projects, electricity systems, urban development, economic zones, industrial parks, clusters, postal and telecommunications systems, and cultural and social facilities have been invested in and constructed, contributing to the accelerated economic growth of the province.

Many important road transport projects have been invested in and constructed, such as the West Nghe An road; the road connecting National Highway 1A between Hoang Mai town and Thai Hoa; the N5 road connecting the Southeast Economic Zone - Hoa Son, Do Luong, serving the transportation of raw materials for the Song Lam Cement Plant; the Song Lam overpass (Cau Dung, Cau Yen Xuan); and 5 railway overpasses on National Highway 46 and National Highway 1...

Construction of the D4 road in the Southeast Economic Zone is underway.

Continue restructuring public investment.

The implementation of the policy on restructuring public investment still faces some limitations, and some aspects of the investment restructuring policy are difficult to implement in the province, such as the policy on converting investment forms. Because the projects in the province are all located in unfavorable geographical locations and are unlikely to generate profits, investors are reluctant to undertake these projects.

Furthermore, the cutting, delaying, and selection of technical stopping points for public investment projects have had several negative impacts on the province's economic and social development. Consulting and construction businesses are facing difficulties due to a lack of capital and work, leading to unpaid wages and social insurance contributions. Many businesses are at risk of bankruptcy, causing bad debts to increase, workers to lose their jobs, and inventory of construction materials to rise.

Public investment capital is trending downwards, but the province still lacks breakthrough solutions to mobilize other resources to serve its socio-economic development needs. Regarding this issue, Ms. Hoang Thi Le Dung, Deputy Director of the Department of Finance, stated that the goal of restructuring public investment is to reduce state budget expenditures, but local policies funded by the budget for projects are numerous. Therefore, a comprehensive analysis is needed to further clarify the effectiveness of public investment restructuring.

Thu Huyen