Overall review of projects using government bond capital

The National Assembly spent the entire day of June 7 in the hall discussing the results of the supervision of the implementation of the Law on Practicing Thrift and Combating Wastefulness in the Use of Government Bond Capital for Basic Construction Investment in the 2006-2012 Period.

Minister of Planning and Investment Bui Quang Vinh speaks at the discussion session on the afternoon of June 7. (Photo: Lam Khanh/VNA)

Concluding the discussion, Vice Chairwoman of the National Assembly Nguyen Thi Kim Ngan said that most of the National Assembly deputies agreed with the Government and the National Assembly's decision to issue government bonds for investment in important projects to meet investment needs and upgrade socio-economic infrastructure nationwide. However, the deputies also suggested that there should be a comprehensive review of projects using government bonds to take timely measures.

According to the Government's report No. 196/BC-CP dated May 17, 2013, in the period of 2006-2012, government bond capital was allocated to implement 2,682 projects with a total initial investment of VND 409,415 billion. As of the time of the 2012 plan assignment, the above projects had adjusted their total investment to VND 684,794.5 billion and by the end of 2012, 2,029 projects had been completed, reaching 70% in the fields of transportation, irrigation, health care and education and training.

Basically, ministries, branches and localities have complied with regulations on the use of government bond capital. Completed projects with effective results are being exploited and used to contribute to the completion of the country's infrastructure and socio-economic system, especially in disadvantaged localities and mountainous, remote and isolated areas.

In addition to agreeing with the results achieved as stated in the report, delegates also said that the implementation of government bond capital in the period of 2006 - 2012 still revealed some shortcomings and limitations. Specifically, the adjustment of investment levels was too large in most projects leading to imbalance in capital sources, many projects adjusted the total investment due to price increases, adjusted technical factors, and increased scale unreasonably, not in accordance with the provisions of law.

The allocation of government bond capital in the 2006-2012 period was still spread out; many targets were added, the number of projects and total investment increased rapidly, leading to a lack of capital; many ongoing projects had to be cut, reduced, extended, postponed, and their investment forms changed, causing waste of resources. The mechanism for allocating government bond capital was not reasonable, there were no specific allocation criteria but allocation by project, leading to inequity between regions, areas, and localities, easily creating a "request-grant" mechanism; many projects did not ensure the urgency and necessity of investment with government bond capital according to the initial targets decided by the National Assembly and the National Assembly Standing Committee.

To use government bond capital effectively, delegates Phuong Thi Thanh (Bac Can delegation) and Nguyen Thi Kim Tien (Ho Chi Minh City delegation) expressed that the National Assembly should consider and prioritize the allocation of government bond capital reserves or increase the total issuance of government bonds in the 2012-2015 period to continue investing in unfinished projects and works to bring them into use with high efficiency. Especially, priority should be given to projects that are being cut or delayed in localities, mountainous provinces, border areas, and ethnic minority areas.

Along with seriously implementing the inspection, examination, management of the use of government bond capital, strictly handling violations under the responsibility of competent persons, it is recommended that the state audit, based on the content of the National Assembly's annual thematic supervision, select comprehensive audit topics and send audit results reports to provide a basis for National Assembly deputies, with information to discuss the results of thematic supervision at the session.

Delegate Nguyen Thanh Tam (Tay Ninh delegation) said that the National Assembly should consider including government bond capital in the State budget balance so that the management and use of this capital is strict, has a solid legal basis and reflects the true nature of this capital.

Delegates Ly Kieu Van (Quang Tri delegation) and Nguyen Huu Duc (Binh Dinh delegation) suggested that there should be close and substantive coordination in reviewing and evaluating to clearly identify the list of projects that have been allocated sufficient government bond capital, complete investment in the list of projects that have not been allocated government bond capital to mobilize other sources and the list of projects that have been implemented in investment phases and have reached the technical stopping point with sufficient capital and ensure effectiveness. On that basis, a suitable supplementary plan should be soon formed to submit to competent authorities for consideration and decision in the spirit of final investment, avoiding waste and loss.

In addition, delegate Nguyen Huu Duc suggested that priority should be given to using the Government bond capital reserve for the 2011-2015 period, approximately more than VND 7,500 billion, for a number of ongoing projects that lack capital and are linked to the main objectives of this program, such as district and commune central roads, district hospitals, unfinished irrigation projects, including ministerial-level projects in localities.

Expressing agreement with the above proposals, delegate Nguyen Thi Kha (Tra Vinh delegation) proposed that the National Assembly include government bond capital in the state budget balance for management according to law. The National Assembly shall issue resolutions for each of these areas and review all projects that have used government bond capital to take timely measures to handle unfinished projects, prioritizing reserve funds to prevent waste.

Seriously acknowledging the limitations in allocating capital from Government bonds, Minister of Planning and Investment Bui Quang Vinh said that this program is quite long (about 7 years) so there are many problems. The Government has recognized this problem and has drastic solutions to overcome it.

“Since 2003, this program has made an important contribution to changing the appearance from urban to rural areas. Therefore, it is necessary to properly assess this issue to have a correct perspective for the next stage.”- Minister Bui Quang Vinh emphasized.

Explaining at the discussion session, Minister of Transport Dinh La Thang said that by the end of 2011, the total adjusted investment in Government Bond capital for transport was 111,675 billion, an increase of 44,448 billion compared to the original. The increase was mainly due to changes in institutions and policies, increased prices of raw materials, site clearance, addition of some items under the direction of the Government, technical handling during construction, etc.

According to Minister of Health Nguyen Thi Kim Tien, the approved allocation of Government Bond capital for the health sector is 46,628 billion VND for 856 projects. Of which, 845 are local projects and 11 are central projects, but the actual allocation is only 23,200 billion (49% of the total approved 46,628 billion), accounting for 15% of the total Government Bond capital for all activities.

The Minister proposed that the National Assembly and the Government consider continuing to allocate government bond capital for unfinished projects such as basic construction and equipment; strengthening commune health stations for remote districts, for key projects.../.

According to (TTXVN) - LT