Disbursement of capital for basic construction reached 72% of the plan

(Baonghean) - By the end of September 2015, the whole province had disbursed a total of 6,654 billion VND/plan of 9,201 billion VND, reaching 72% of the capital plan (same period last year reached 75%). Of which: Construction investment capital (NSTW) reached 360 billion VND, reaching 73% (same period last year 88%), Construction investment capital (NSProvincial) reached 2,243 billion VND, reaching 79%.

Tay Nghe An Road has been completed (photo by Hoang Vinh).

In 2015, the capital for construction investment was allocated early and synchronously from the beginning of the year, creating favorable conditions for investors to implement. In the first 9 months of 2015, the total mobilized capital from society was estimated at 31,242 billion VND, equal to 76.5% of the plan, up 12.9% over the same period. The volume of construction investment from the state budget and government bonds reached about 2,662.68 billion VND, equal to 79% of the plan.

Mr. Nguyen Van Do, Director of the Department of Planning and Investment, said: “The sectors have organized XDCB meetings to urge and accelerate project implementation progress, grasp the difficulties and obstacles to promptly resolve, especially key investment projects in the province. Some projects have been approved by the Central Government, such as Vinh - Cua Lo Boulevard, which has been approved by the Government for investment in the medium-term plan from public investment capital; promoting preparations for the Vientiane - Paksan - Thanh Thuy - Hanoi expressway project. The settlement of completed projects has been directed by all levels and sectors.”

However, it can be seen that the disbursement rate is not high. For example, the Tay Nghe An road project has a total capital of 2,127 billion VND, of which 1,690.5 billion has been allocated, and the Hoang Mai - Thai Hoa National Highway has a total investment of 854.7 billion VND, of which 520 billion VND has been allocated.

By September 30, disbursement of capital for construction investment under the central budget reached 73%, 15% lower than the same period last year, disbursement of provincial budget capital reached 79% (same period 77%); district budget capital reached 88%, commune budget capital reached 66%. Disbursement of capital for Government bonds managed by the central government reached 65% with 1,543 billion VND, capital for Government bonds managed by the province reached 65%.

Hoang Mai - Thai Hoa road disbursement progress is still slow (photo by Hoang Vinh).

According to Mr. Nguyen Ngoc Sinh, Deputy Director of the Provincial State Treasury: The disbursement rate of some projects is not high, due to many reasons. For example, the Government Bond capital to implement the National Target Program on New Rural Construction was assigned late (April 2015). Because the prescribed time for implementation and payment is still long, the investor has not been determined to urge. Regarding the advance capital in the State Treasury: Until August 12, 2015, the Ministry of Finance issued Document No. 11090 agreeing with the list of projects and the capital level in Decision No. 2138/QD-UBND dated May 28, 2015 of the Provincial People's Committee on the allocation of advance capital from the State Treasury.

Some projects are stuck in compensation and site clearance work, affecting construction progress and disbursement, such as: National Highway 7A to Con Cuong small industrial park, Mau Duc - Thach Ngan road (Con Cuong)...

Another reason for the delay is the implementation of the Provincial People's Committee's policy to consolidate project management boards of sectors and districts. Due to the merger and personnel changes of the Management Boards of Departments and districts, the handover... also affects the project implementation situation.

Slow disbursement of construction capital has many consequences, not only does construction debt increase but it also causes a cycle of debt, with businesses owing other businesses, the state owing other businesses, contractors owing banks, and black credit debt...

Mr. Nguyen Van Qui, Investment Department of Nghe An Department of Finance said: "To speed up the disbursement of construction capital, the settlement of projects needs to be promoted, but currently many investors have not coordinated with contractors to do this well. Investors need to urgently complete investment procedures, speed up bidding, closely follow the projects, urge construction units and consultants to speed up progress, accept payment volume to immediately disburse funds for projects; rectify the advance payment work according to the contract and neatly settle the projects".

Chau Lan