Electricity prices and wages increase but irrigation unit prices do not increase.

On the morning of January 15, the Provincial National Assembly Delegation conducted a supervision visit to the Nam Nghe An Irrigation Company Limited on the implementation of policies and laws on state capital and asset management. Deputy Head of the Provincial National Assembly Delegation Nguyen Thanh Hien chaired the meeting.

Working scene. Photo: Thanh Le

Nam Irrigation Company Limited was converted from Nam Nghe An Irrigation Company. Evaluating the performance, the Company Director, Mr. Bach Hung Tuyen, said that although the company was converted into a one-member LLC, its operations were still like a public service unit assigned by the State to manage irrigation works, so although it had large assets, it had no working capital, leading to difficulties.

The company director assessed that the company's financial resources implemented under Decree 67/CP on irrigation fee support were outdated because salary and electricity prices had changed many times while the irrigation fee unit price remained unchanged.

Mr. Bach Hung Tuyen - Director of Nam Irrigation Company Limited reflects on the inadequacies in implementing the company's mechanisms and policies. Photo: Thanh Le

For example, the cost of raw water according to Decree 67/CP implemented since 2012 is 9,000 VND/m³But the Provincial People's Committee only allows the price of 630 VND/m³(support for people using domestic water).

Therefore, the company's revenue shortfall from 2012 to 2017 was 11.3 billion VND, so its annual production activities did not meet financial requirements.

Nam Irrigation Company Limited is a state-owned enterprise operating in the field of management and exploitation of irrigation works, serving annual irrigation for over 45,000 hectares of agricultural land; at the same time preventing salinity, keeping fresh water, draining waterlogging, and fighting floods in the districts of Hung Nguyen, Nam Dan, Nghi Loc and Vinh City, Cua Lo Town...

The company manages and operates 36 pumping stations and 13 reservoirs, with total managed assets worth over VND1,000 billion.

“Costs are constantly increasing while prices remain unchanged, making it more difficult for the company to operate. Businesses do not have working capital, so they have to borrow money to operate, and small difficulties give birth to big difficulties,” said Mr. Tuyen.

Besides, the difficulty of the unit is that, although the model has been transformed, the operating mechanism has not changed, making the business unable to promote dynamism and creativity, leading to difficulty in development.

"Resources to support irrigation fees for farmers should be concentrated in one place for unified management, avoiding inadequacies and dispersion" - Mr. Tuyen suggested.

Nghe An launched irrigation work. Photo courtesy

At the same time, Mr. Bach Hung Tuyen recommended that the State needs to unify planning work to avoid overlap and interweaving.

For example, a location has been planned for an irrigation project but then other economic projects are planned to overlap, Mr. Tuyen suggested that the province needs to unify, implement methodically and synchronously in planning work, to avoid wasting state and people's assets.

Speaking at the meeting, Mr. Phan Ngoc Chau - Head of Enterprise Asset Management Department, Department of Finance said: Although the new Law on Irrigation stipulates the removal of irrigation fees and the transfer to irrigation prices, the Ministry of Finance has not yet provided specific instructions. To remove difficulties for irrigation enterprises, the State must soon issue irrigation fees so that units can proactively calculate them in production and business.

Concluding the meeting, Deputy Head of the Provincial National Assembly Delegation Nguyen Thanh Hien assessed that Nam Irrigation Company Limited is a unit with a long tradition in irrigation.

During the model conversion process, the unit has complied with regulations;Building internal regulations; Party and mass organization work is focused on, operates well, ensuring workers' rights.

Over the past time, the unit has preserved and increased capital and assets assigned to manage; ensured irrigation and drought prevention activities, and carried out urgent tasks when required in a timely manner.

For the unit's recommendations, the Supervisory Delegation receives and synthesizes the recommendations of the Provincial People's Committee and relevant ministries, branches and the Government.

Thanh Le