Nghe An focuses on disbursing investment capital, stimulating growth
(Baonghean) - In the first 6 months of 2020, the disbursement of public investment capital has been focused on. The People's Committee of Nghe An province has directed the inspection and supervision of the progress of key projects; however, the disbursement of capital has not yet met the demand, while this is the most important solution to promote socio-economic development at this time.
Positive signs
In 2020, one of the advances compared to previous years in basic construction work is that the capital allocation decision of the Central Government and the Provincial People's Council was implemented early. In particular, 2020 is the first year that capital sources for target programs, national target programs and foreign capital are allocated simultaneously with capital sources for balancing local budgets, creating conditions for investors to proactively implement.
However, due to the impact of the Covid-19 epidemic, the Government, ministries and central branches have continuously issued many documents directing and urging the implementation of plans and accelerating the disbursement of public investment capital, such as the issuance of Resolution 01/NQ-CP dated January 1, 2020 on the main tasks and solutions to direct and implement the socio-economic development plan and the State budget estimate in 2020; Official Dispatch No. 622/TTg-KTTH of the Prime Minister on focusing on directing and accelerating the disbursement of public investment capital in 2020...
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| Checking the construction progress of Hung Dao and Hung Nguyen resettlement areas. Photo: Tran Chau |
Regarding Nghe An province, based on the direction of the Government, the central ministries, branches, departments and branches in the province have also advised the Provincial People's Committee to direct and promptly implement in the province. The Provincial People's Committee issued Decision No. 116/QD-UBND dated January 10, 2020 on the main tasks and solutions for directing and implementing the socio-economic development plan of Nghe An province in 2020; establishing working groups to direct and promote the implementation of the 2020 plan; establishing a working group on basic construction investment; Plan No. 179/KH-UBND dated March 31, 2020 on promoting the removal of difficulties for production and business, ensuring social security and social order and safety, responding to the Covid-19 epidemic...
In addition, accelerating the progress of basic construction projects is considered a good solution to stimulate the socio-economic development. The Provincial People's Committee focuses on directing sectors and localities to accelerate the progress of key projects, especially projects that have been allocated capital.
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| Construction of resettlement area to serve land clearance for North-South expressway. Photo: Tran Chau |
Nghe An Provincial People's Committee has advised the Provincial People's Council to hold an extraordinary meeting to approve the investment policy for a number of urgent local projects using the general reserve fund of the Central Budget to allocate for important projects; these are the projects: President Ho Chi Minh Memorial House in Kim Lien Commune (Nam Dan) with 90 billion VND; Project to Preserve and Promote the Value of Nghe Tinh Soviet Square (Hung Nguyen): 100 billion VND; Coastal Road from Nghi Son (Thanh Hoa) - Cua Lo (Nghe An): 1,500 billion VND, Thanh Nam Bridge over Lam River (Con Cuong): 150 billion VND, Dien Kim Bridge (Dien Chau): 100 billion VND.
Up to now, the projects have completed the documents and procedures to be eligible for the Prime Minister to assign additional medium-term public investment plans for the period 2016-2020. The Prime Minister issued Decision No. 755/QD-TTg dated June 3, 2020 to assign additional medium-term plans for the period 2016-2020 with a total amount of 314 billion VND from the reserve fund; The Provincial People's Committee issued Decision No. 1887/2020 to adjust the additional allocation of the medium-term plan for the period 2016-2020 to 314 billion VND and the plan target for 2020 to 244 billion VND.
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| Route of the coastal road project from the intersection of National Highway 46 to Provincial Road 535 (KM76+00-KM83+500). Photo: Document |
Recently, the coastal road project from Nghi Son (Thanh Hoa) to Cua Lo (Nghe An) was started with the participation of the Minister of Planning and Investment. The project has a total capital of 520 billion VND, with a route length of 7.422 km, starting at the intersection with National Highway 46 of Nghi Loc district, ending at the intersection with Provincial Road 535 of Cua Lo town. This will be an important driving force to promote the key economic zones of Nghe An and Thanh Hoa. The North-South Expressway has enough capital, just waiting for the land.
Data as of June 30, 2020 shows: There are 9 districts with good disbursement, reaching over 50%, of which 6 districts and towns have over 60%, including: Tan Ky, Cua Lo Town, Dien Chau, Thanh Chuong, Yen Thanh and Anh Son. Some industries and some investors have good disbursement rates, such as: Nghe An Livestock Breeding Center, Nam Nghe An Irrigation One Member Co., Ltd....
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| Graphics: Lam Tung |
Disbursement results are an indicator of performance.
In a recent meeting of the Provincial People's Committee, Chairman of the Provincial People's Committee Nguyen Duc Trung stated the importance of disbursing public investment capital in this period as "a driving force for growth" and the head of the Provincial People's Committee "requested departments, branches and localities to perform well their assigned tasks, using disbursement results to evaluate achievements in 2020. Any unit that cannot ensure disbursement results will not be considered for emulation".
The Covid-19 pandemic is complicated, other economic activities may be stagnant, affected, but basic construction activities and construction of current projects are the driving force and lever to create value. Especially for many projects that already have capital, projects that have been allocated capital early this year. Delays waste investment resources, as well as not creating jobs and budget.
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| Construction of resettlement areas in Hung Trung and Hung Nguyen to serve the clearance of the North-South expressway. Photo: Tran Chau |
However, up to now, there are still some capital sources that have not been assigned in detail for implementation, many projects have low disbursement rates; foreign capital sources: By June 30, 2020, disbursement was 154,464 million VND/plan 453,700 million VND, reaching 34.05% of the assigned plan; source from the National Target Program for Sustainable Poverty Reduction: Disbursement was 133,193 million VND/plan 358,139 million VND, reaching only 37.19%.
In addition, due to the impact of the Covid-19 epidemic, projects stopped construction in March and April 2020, and construction work only started in May 2020. Therefore, by the end of May 2020, units were continuing to complete the completed volume, but had not yet accepted the volume for disbursement. Currently, there are 12 projects in the process of disbursement procedures, 1 project is completing settlement procedures, and site clearance for many projects is still slow.
By August 15, 2020, all capital must be disbursed from 2018 and 2019 to 2020. Nghe An strives to disburse over 60% of the central budget capital plan assigned at the beginning of the year by August 31, 2020 to have a basis to propose to the Central Government to supplement the 2020 plan for important and urgent projects.
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