Nghe An tightens public investment management

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

Anti-diversified investment

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

Mr. Nguyen Van Do - Director of the Department of Planning and Investment said: Implementing Resolution 11/NQ-CP of the Government, Directive 1792 of the Prime Minister, Law on Public Investment, the Provincial People's Committee as well as localities have postponed and extended the progress of many ineffective works and projects, which are not feasible in terms of capital sources to focus capital on completed projects put into use, key and urgent projects.

The issuance of investment policies in the period 2014 - 2016 has decreased significantly compared to previous years, the number of newly started projects is very small.

Construction of Nghi Thiet Port (Nghi Loc).

“In previous years, the central government’s decentralization mechanism was open, especially in 2008-2009 in the context of economic recession, the Government implemented an investment stimulus policy, so capital sources increased sharply. Therefore, the number of investment policies issued was large, leading to many unfinished projects and new projects in the province with very large capital needs, far from the ability to mobilize resources.

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

Socialized investment

Every year, implementing the resolution of the Provincial People's Council on mobilizing capital sources for development investment, the Provincial People's Committee has developed many policies to attract investment capital. Investment promotion work is focused, so the total capital mobilized every year increases.

In particular, the proportion of investment from state capital through the provincial budget compared to the total social investment gradually decreased 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 tended to increase.

Implementing Directive 1792/CT-TTg on strengthening investment management from state budget and government bonds, Nghe An province issued Directive 25/CT-UBND to implement in the province, the process of allocating annual capital plans is prioritized to repay debts, tightening the issuance of investment policies.

The project implementation process strictly adheres to the principle of only implementing the volume according to the assigned capital plan, not allowing contractors to advance capital for construction. Therefore, the number of new projects started tends to decrease, at the same time, the number of projects completed in the year gradually increases.

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

The results of mobilizing social investment capital and innovating the allocation in the 2014 - 2016 period have significantly changed the province's socio-economic infrastructure connection system. Many irrigation and clean water projects; electricity systems, urban development, economic zones, industrial parks, industrial clusters, post and telecommunications systems, cultural and social projects have been invested in and built, contributing to accelerating the province's economic growth rate.

Many important road traffic works have been invested in construction such as Tay Nghe An road; road connecting National Highway 1A of Hoang Mai town - Thai Hoa, N5 road connecting Dong Nam Economic Zone - Hoa Son, Do Luong serving the transportation of raw materials for Song Lam Cement Factory, Song Lam overpass (Cau Dung, Yen Xuan bridge), 5 railway overpasses of National Highway 46, National Highway 1...

Construction of D4 route - Southeast Economic Zone.

Continue restructuring public investment

The implementation of the public investment restructuring policy still has some limitations, some contents of the investment restructuring policy are very difficult to implement in the province such as the policy of converting investment forms. Because the projects in the province are all projects with unfavorable geographical locations, it is difficult to recover capital and make profits from the project, so investors do not want to implement the above projects.

In addition, the reduction of progress and the selection of technical stops for public investment projects have had some negative impacts on the economic and social development of the province. Consulting and construction enterprises are facing difficulties due to lack of capital and lack of jobs, leading to unpaid wages and social insurance debts. Many enterprises are facing the risk of bankruptcy, leading to increased bad debts, job losses for workers, and increased inventories of construction materials.

Public investment capital tends to decrease gradually but the province has not yet had a breakthrough solution to mobilize other resources to serve the socio-economic development needs of the province. Regarding this issue, Ms. Hoang Thi Le Dung - Deputy Director of the Department of Finance said that the goal of restructuring public investment is to reduce state budget expenditure, but local policies from the budget for project works are very much, so it is necessary to synthesize to clarify the effectiveness after restructuring public investment.

Thu Huyen