Department of Transport: 31 transport projects have over 508 billion VND in outstanding basic construction debt

(Baonghean.vn) - The reason for the large number of projects and total outstanding debts of traffic projects invested by the Department of Transport is that many projects have adjusted their projects and adjusted their total investment.

That was the issue analyzed and clarified at the working session of the Provincial People's Council Standing Committee with the Department of Transport on the morning of March 27 according to the program to monitor the implementation results of a number of basic construction investment projects using the State budget.

Comrade Hoang Viet Duong - Member of the Provincial Party Executive Committee, Vice Chairman of the Provincial People's Council chaired the meeting. Photo: Mai Hoa

According to a report from the Department of Transport, in 2 years (2015, 2016), 38 projects invested by the Department were implemented, of which 29 projects were completed and put into use (as of December 31, 2016).

It is worth noting that this unit has done a good job in planning and investment management, so there are no unplanned projects; no projects with advance payments or advances exceeding the value of the implemented volume.

However, the problem is that the debt in basic construction is still large, with 31 projects still owing more than 508 billion VND. Of which, 13 projects have been settled with a debt value of more than 28 billion VND; 12 projects have not been settled with a debt value of nearly 197 billion VND; 6 projects are unfinished but have completed some items with a debt value of more than 283 billion VND.

Comrade Nguyen Hong Ky - Member of the Provincial Party Executive Committee, Director of the Department of Transport and Communications, pointed out the debt situation of capital construction investment for traffic works. Photo: Mai Hoa

According to the explanation of Director of Department of Transport Nguyen Hong Ky: Current basic construction debt has 2 forms, which are the Department's debt to the contractor and debt to some items of the project.

The head of the Department of Transport expressed concern that the debt for some items of the project affects the quality of the project and the traffic of vehicles.

For example, the road connecting National Highway 1A to Thai Hoa town has been paved with the first layer of asphalt and is open; if there is no capital to continue paving the second layer, current traffic will affect the quality of the project.

Or the Phuong Tich bridge project has been completed, but due to lack of capital, the roads on both sides of the bridge have not been built, causing difficulties in traveling. Or the Vinh - Cua Lo boulevard, which was started in 2014, has not yet been opened to traffic, affecting the quality of some sections that have been constructed...

The working delegation of the Provincial People's Council Standing Committee directly supervised the Phuong Tich bridge project (Nghi Loc district). Photo: Mai Hoa

At the meeting, the working group of the Provincial People's Council Standing Committee analyzed and clarified the cause of the outstanding debt in basic construction, which is that many projects have to adjust their designs and investment items, and each time such adjustment increases the investment level. The supervision of construction progress is not good, some projects have a long implementation time, leading to price differences. In addition, the group also frankly pointed out some limitations, that is, there are still many unfinished projects, especially key projects. Many projects have been completed but have not been finalized....

Concluding the meeting, on the basis of appreciating the advisory work and organizing and directing the development of transport infrastructure in the province as well as pointing out a number of difficulties and limitations, comrade Hoang Viet Duong - Vice Chairman of the Provincial People's Council requested the Department of Transport to continue to strengthen the advisory work for the Provincial Party Committee, People's Council, and Provincial People's Committee in the management, operation, and planning of transport development in general and in each region in particular.

The Vice Chairman of the Provincial People's Council also noted the need to prioritize key projects that have an impact on regional socio-economic development for investment; coordinate with departments and branches to inspect and evaluate the quality of traffic works; pay attention to urging the construction of unfinished projects to put them into use soon; actively seek investment resources, seek support mechanisms for the development of traffic infrastructure in the province, ensuring development; focus on settlement, determine a suitable and timely debt payment roadmap...

Minh Chi