Accelerate the disbursement of public investment from foreign loans.
On the afternoon of December 3rd, in Hanoi, the Ministry of Finance held a nationwide online meeting on the situation of public investment disbursement from foreign sources in 2024.
The conference, chaired from the Hanoi location, was attended by a representative from the Ministry of Finance. Also present were representatives from relevant ministries and agencies, as well as representatives from 47 out of 63 provinces and cities with public investment projects funded by foreign loans.
The conference, chaired from the Nghe An branch, was attended by Comrade Trinh Thanh Hai, Member of the Provincial Party Committee and Director of the Department of Finance. Also present were representatives from relevant departments and agencies, and the People's Committees of localities with public investment projects funded by foreign loans.
In 2024, nationwide, despite being assigned plans and integrating into the Budget Management Information System (Tabmis) quite early, and despite continuous urging and reminders from the Department and the Ministry during implementation, the results and progress of disbursing these funds remained low due to numerous difficulties and obstacles. By November 30, 2024, the nationwide disbursement of allocated funds reached approximately 39%, and the disbursement by localities that borrowed funds only reached about 32%.
At the conference, representatives from localities with large public investment projects financed by loans, such as Hanoi, Hue, Ho Chi Minh City, Ninh Binh, etc., reported on the situation and progress of disbursement, shared experiences in organizing effective disbursement; and at the same time, raised difficulties and obstacles from their localities, thereby proposing solutions to central ministries and agencies.
In Nghe An province, out of a total of 6 foreign-funded projects currently underway, 3 projects have been allocated foreign capital in the 2024 plan, while the remaining 3 projects have not yet been allocated capital. Of these, 2 projects financed by the German government have recently completed adjustments to their investment policies and extended their implementation periods, therefore they do not require funding in 2024. One project financed by the World Bank recently signed its loan agreement in August 2024 and is currently implementing related aspects.
Nghe An province aims to achieve a disbursement rate of approximately 50% from borrowed funds by the end of 2024.
At the conference, a representative from the Department of Debt Management and External Finance, Ministry of Finance, stated that the fundamental reason for the slow disbursement progress nationwide is related to procedures for preparing investment projects, and a lack of proactive capital planning, leading to inaccurate investment implementation. Some projects had to be modified or extended, but the adjustment and supplementation of investment policies were slow, causing the disbursement progress to slow down.
With little time remaining in 2024, the Ministry of Finance requests that localities promptly address the aforementioned shortcomings to ensure that the disbursement rate by the end of 2024 reaches at least 50%; and at the same time, prepare well for the investment phase to implement projects allocated capital in 2025.
Based on the recommendations received, the Ministry of Finance will consult with international experts and compile a report to the competent authorities on solutions to overcome difficulties and obstacles.