Vinh City: Proactively source counterpart funds for WB Project

(Baonghean) - In Vinh City, many bidding packages under the Project for the Development of Medium-sized Cities in Vietnam - Vinh Urban Development Sub-project are being implemented. The project's capital includes loans from the World Bank (WB) and counterpart funds from Vietnam. Currently, the city is actively implementing solutions to balance counterpart funds in a timely manner to meet the project's progress.

The project for developing medium-sized cities - Vinh urban development sub-project has a duration of implementation from April 2012 to the end of December 2017. By the end of February 2016, in the project components, 8 consulting packages have completed selecting contractors and signed contracts for all main consulting packages of the project; all 16 construction packages have also been organized for bidding; site clearance work has been basically carried out promptly and simultaneously for contractors to start construction...

By the end of February 2016, the construction volume of the North Canal section 1 was estimated to have reached over 99%. The North Canal section 2, won by the consortium of Tan Nam Construction Joint Stock Company, Nghe An Petroleum Industry Joint Stock Company and Tan An Construction Joint Stock Company, has completed the entire bridge over the canal, culverts, dredging the canal bed... with 100% completion.

The land auction planning area in Quan Bau ward is being leveled in preparation for the auction in March 2016. Photo: Thanh Duy

Currently, the contractor is urgently cleaning the canal bed and completing the project according to the inspection results of the Ministry of Construction, striving to complete the project before March 29, 2016. For the North Canal section 3, constructed by Hanoi Construction Corporation, the estimated volume is 35%.

The contractor has committed to completing the project before October 26, 2016, 8 months ahead of schedule. The construction contract for the upgrading and renovation of the canal around Vinh Citadel was signed on January 27, 2016 and is expected to be completed on August 10, 2017. For this package, the competent authority has approved the first phase of compensation and site clearance with a total value of VND 43.3 billion and has paid VND 15.5 billion for an area of ​​4.29 ha/6.47 ha.

The second and final phase of compensation and site clearance is being implemented and is expected to be completed this March. In general, except for the two packages of resettlement area in hamlet 5, Nghi Phu commune and school sanitation which have been completed, the remaining packages are being urgently implemented.

The proactive source of counterpart funds will contribute to meeting the progress of the WB Project. However, the Project for the Development of Medium-sized Cities - Vinh Urban Development Sub-project, the counterpart funds have not yet met the requirements set out to closely follow the progress plan of the packages in the coming time, especially for site clearance work.

Mr. Nguyen Trung Dung - Director of Vinh Urban Development Sub-project Management Board said: "The counterpart fund in 2015 and 2016 to carry out compensation for site clearance and bidding for the remaining packages of the project needs 495.4 billion VND. Vinh City has organized land auctions and collected 378 billion VND, 202 billion VND has been provided for the project, leaving 293.4 billion VND, of which the city's 2016 plan is 233 billion VND; the province is 7 billion VND and the Central government is 15 billion VND, which needs to be met in March 2016".

In order to proactively source counterpart funds for the Vinh Urban Development Sub-project, the city has proactively integrated solutions to effectively exploit the land fund. The city has submitted a request and received approval from the Provincial People's Committee to auction the land use rights of 7 planning areas without infrastructure to promptly have counterpart funds of 233 billion VND. With this policy of the Provincial People's Committee, Vinh City has proactively accelerated the exploitation of land funds, accordingly, in these planning areas, investment in infrastructure construction will be carried out, along with the auction and land allocation, and issuance of Land Use Rights Certificates to the households that win the auction later.

Block 9 planning area, Quan Bau ward includes 2 areas with a total area of ​​about 10 hectares, arranging to auction 360 residential land lots, which is 1 of 7 planning areas. This is land managed by Hung Dong Agricultural Cooperative and assigned to members for production. Implementing the land auction plan, since mid-2015, Quan Bau ward has actively coordinated with functional agencies to carry out compensation and site clearance for this land area.

Mr. Ho Sy Dung - Chairman of Quan Bau Ward People's Committee said: "To gain consensus from the people, the ward has focused on propaganda and mobilization; verifying the origin of the land, measuring and counting according to regulations. Up to now, the site for the first phase auction of about 80 land lots in March is ready. The construction unit is actively leveling the ground."

In addition to the above planning area, there are also planning areas in hamlet 11, Nghi Kim commune; hamlet 18A, Nghi Lien commune, planning areas for land plots on both sides of 24m road, Mau Don hamlet and Hoa Tien hamlet, Hung Loc commune. In total, at the 7 planning areas, the site clearance work has been basically completed. Of which, at the planning areas for land plots on both sides of 24m road in Hung Loc commune; hamlet 11, Nghi Kim commune; hamlet 18A, Nghi Lien commune, the first phase of auctions has been organized.

Quan Bau Ward has 80 land lots that will be auctioned in March. Photo by Thanh Duy

Mr. Hoang Hong Khanh - Head of Land Fund Exploitation Investment Department, Vinh City Land Fund Development Center said: “The planned land fund exploitation in the first quarter of 2016 is 200 billion VND. Currently, we have organized auctions and collected 63 billion VND. By the end of March, the auctions in the planning areas will generate revenue of about 130 billion VND. At the same time, before June 30, 2016, it is expected that an additional 300 billion VND will be auctioned, ensuring the counterpart capital for the project and repaying a part of the provincial budget”.

Mr. Le Sy Chien - Vice Chairman of Vinh City People's Committee said: "Determining that land fund exploitation to increase budget revenue is a very important political task, so with the close direction of Vinh City Party Committee, the City People's Committee has had many solutions to speed up the implementation progress to achieve the proposed land fund exploitation plan. In particular, the city focuses on integrating administrative, financial, mechanism, starting price, and planning solutions so that relevant departments and People's Committees of wards and communes can effectively implement land fund exploitation. In 2015 alone, the city's land revenue was 500 billion VND, an increase of 60% compared to the plan assigned by the province".

The Vinh urban development sub-project, when completed, will have great significance for the city's infrastructure, bringing many advantages to the people's lives. Therefore, proactively exploiting land funds to fully match the counterpart capital of Vinh City is necessary, contributing to the implementation of the project on schedule, maintaining the reputation of the credit provider partner, the WB.

Nhat Le