Prime Minister commends Nghe An on progress of public investment disbursement

On the morning of July 16, under the chairmanship of Prime Minister Nguyen Xuan Phuc, the Government Standing Committee held an online conference with localities on promoting the implementation and disbursement of public investment capital in 2020. Photo: Quang Hieu/VGP

Chairing at Nghe An bridge point, there was comrade Nguyen Duc Trung - Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee; co-chairing were comrades: Hoang Viet Duong - Vice Chairman of Provincial People's Council; Bui Dinh Long - Vice Chairman of Provincial People's Committee.

Need strong sanctions to handle and resolve difficulties

Speaking at the opening of the conference, Prime Minister Nguyen Xuan Phuc affirmed that at present, people are facing income difficulties due to the consequences of the Covid-19 pandemic, workers are losing their jobs, workers have low wages and the country is facing many challenges. Investment capital flows, including social investment and state investment, are slow and lower than planned. In that context, public investment is one of the solutions for our country to overcome difficulties, ensure economic stability, contribute to improving people's lives and ensuring social security.

Prime Minister Nguyen Xuan Phuc delivered an opening speech at the conference. Photo: Quang Hieu/VGP

However, Prime Minister Nguyen Xuan Phuc also emphasized that the disbursement of public investment capital in many ministries, central agencies and localities is slow and ineffective. The Prime Minister requested that through this conference, the causes, especially subjective causes, for the delay in implementing this capital source be clarified.

The Prime Minister questioned why, with the same policies, conditions and circumstances, this locality has implemented public investment capital well, while other localities have been sluggish. Prime Minister Nguyen Xuan Phuc said that bureaucracy and distance from the people is one of the reasons why public investment activities are slow to progress, and many important projects and works cannot be implemented. The head of the Government also commended 10 provinces that have implemented public investment capital well with a disbursement rate of over 44 - over 67%, while reminding and criticizing weak provinces.

Conference scene at Nghe An bridge. Photo: Dao Tuan

Emphasizing that objective causes should not be blamed, the Prime Minister requested that the conference be used to propose strong sanctions in managing, handling, and resolving difficulties in disbursing public investment capital, because this is one of the urgent and important tasks for national development in the current period.

According to the report of the Ministry of Finance, the disbursement in the first 6 months of 2020 was 159,397,188 billion VND, reaching 33.9% of the plan, of which: domestic capital was 145,270,055 billion VND (reaching 37.55% of the plan), foreign capital was 7,061,952 billion VND (reaching 12.52% of the plan), and capital of the National Target Program was 7,065,181 billion VND (reaching 25.85% of the plan).

Although all levels, sectors and localities have resolutely directed to accelerate the disbursement of public investment capital, the disbursed capital increased compared to the same period in 2019, but the disbursement rate in the first 6 months of the year is still low compared to requirements.

Accordingly, besides 3 ministries, central agencies and 9 localities with disbursement rates of over 50%, there are still 30 ministries, central agencies and 3 localities with disbursement rates of less than 20%, of which 7 ministries and central agencies have disbursement rates of less than 5%.

Nghe An is among the top countries with high public investment disbursement rates nationwide.

For Nghe An province, the allocated state budget capital investment source is more than 5,697 billion VND, disbursed by June 30, 2020 is more than 3,591 billion VND, reaching 63%, of which some disbursed capital sources are quite good, such as local budget capital 74.8%; Target Program source according to the central budget is 67%.

Delegates attending the conference at Nghe An bridge. Photo: Dao Tuan

As of June 30, 2020, Nghe An has audited and approved the settlement of 1,162 projects with a total proposed settlement value of VND 2,162 billion, the difference after audit decreased by VND 5,242 billion, saving 1.66%.

Regarding the appraisal of investment projects, bidding work was carried out in accordance with the provisions of law. In the first 6 months of 2019, 95 new projects were received and appraised with a total investment of 619.9 billion VND, of which 608.3 billion VND was approved, a decrease of 11.6 billion VND (a decrease of 1.87%).

Regarding appraisal of project adjustment and supplementation, the total number of projects received and appraised is 17 projects with a total investment submitted for approval of 1,133.6 billion VND, of which 1,104.8 billion VND was approved.

Vinh City will implement a smart urban construction project. Photo: Thanh Duy

Regarding the bidding plan appraisal situation: a total of 406 bidding packages with a total value of VND 1,068.3 billion, of which, 69 packages were open bidding; 23 packages were competitive bidding; 291 packages were designated bidding; and 23 packages were self-implemented.

Raise the responsibility of the leader

Appointed to participate in the first discussion at the conference, Chairman of Nghe An Provincial People's Committee Nguyen Duc Trung said that in the context of general difficulties of the whole country, especially the impact of the Covid-19 epidemic, Nghe An still achieved positive results in disbursing public investment capital.

Chairman of Nghe An Provincial People's Committee Nguyen Duc Trung shared some experiences in implementing public investment capital. Photo: Dao Tuan

According to comrade Nguyen Duc Trung, there are 3 major advantages to promote the progress of implementing public investment capital. Firstly, the allocation of public investment capital in 2020 was implemented early, as the first year right after the Prime Minister issued a decision to allocate capital, localities could allocate in detail. Unlike before, after the Prime Minister assigned, it would go to the Ministry of Planning and Investment, then to the localities. This is an innovation in planning work and creates conditions for localities to be able to quickly allocate capital and disburse early.

Second, the Government and the Prime Minister, under the impact of the Covid-19 pandemic, have given strong instructions in many documents such as Directive 11, Resolution 84, and Official Dispatch 622 of the Prime Minister. In particular, the Prime Minister considers the disbursement of public investment capital reaching 100% in 2020 as one of the five solutions to promote growth.

Third, it is the timely guidance and timely removal of obstacles from ministries, branches and localities in implementing procedures for disbursing investment capital.

The 72m road was completed and put into use in Vinh city. Photo: Chau Lan - Lam Tung

The Chairman of the People's Committee of Nghe An province said that from the beginning of the year, the province has closely followed, seriously and fully implemented the Government's instructions, and has documents specifying these instructions. "We immediately allocated the allocated capital sources so that localities and sectors have the conditions to implement early; established working groups to urge and direct capital disbursement. For key projects, the Vice Chairman of the Provincial People's Committee is directly responsible for monitoring, directing, urging disbursement, promptly removing obstacles for these projects to achieve the target of 100% capital disbursement in 2020" - Comrade Nguyen Duc Trung shared.

To achieve this goal, the province has directed to drastically complete procedures, investment documents, and payment for projects using public investment capital to disburse; assign and promote the responsibility of heads of departments, branches, and localities in disbursing public investment capital. For branches and localities with low disbursement results, the heads must explain and take responsibility.

The province also assigned a review of specific progress for each project for implementation, and determined that in July this year, projects that do not achieve the disbursement rate will transfer capital to projects with higher disbursement capacity.

Praising Nghe An province for its progress in disbursing public investment capital, the Prime Minister said that the experience the province has brought up is very important. These are large projects, important fields, assigned to the Vice Chairman of the People's Committee to directly direct and manage, including handling and urging disbursement. "It is not that the Chairman takes everything, while not having specific knowledge, not checking and urging. The provinces should pay attention to this" - the Prime Minister emphasized.

"Public investment is the savior for the impacts of Covid-19"

After listening to reports from several localities, ministries and branches, clarifying many related issues, concluding the conference, Prime Minister Nguyen Xuan Phuc affirmed that the public investment sector is not only significant for economic growth and national development but also related to the income of millions of people. "Therefore, at this time, it can be said that public investment is the savior for the impacts of Covid-19, not the victim of Covid-19" - the Prime Minister affirmed and requested that ministries, branches and localities need to clearly understand this in order to have higher political determination. Provincial Party Committees, People's Councils and People's Committees of localities must include the content of disbursement of public investment capital in discussions to come up with resolutions for drastic implementation.

Prime Minister Nguyen Xuan Phuc presided over the meeting at the Government bridge. Photo: Quang Hieu/VGP.

According to the plan this year, the whole country must disburse 28 billion USD, equivalent to 630,000 billion VND, of which localities account for nearly 80%. However, through grasping the situation, it shows that project preparation and investment preparation are still weak, with many shortcomings, and nearly 6% of the capital of 7,000 billion VND has not been allocated for disbursement.

Regarding measures, Prime Minister Nguyen Xuan Phuc requested each ministry, central agency and locality to launch a patriotic emulation movement on disbursement of public investment capital, private investment including FDI and ODA investment. Ministries, departments, branches and localities must come up with specific action programs on public investment and disbursement of public investment capital.

From now until the end of the year, there are only 25-26 weeks left. Ministries, central and local agencies are required to report every 2 weeks on capital disbursement and implementation progress.

The Prime Minister decided to adjust capital from places that cannot spend money to projects that can spend money and can disburse capital, including ODA capital. This policy will be implemented starting from August.

The Government, the Prime Minister, ministries and branches must regularly urge, inspect and handle public investment, thereby proposing necessary measures to deal with delays. Capital disbursement will be associated with emulation, rewards and discipline, in order to assess the quality and capacity of cadres and strictly handle leaders who do not complete their tasks, and related groups and individuals. Publicize through the media and press, thereby praising sectors, units and localities that have done well, and at the same time criticizing sectors, units and localities that have not done well. Consider this as one of the measures to speed up the disbursement of public investment capital.