Allocating capital according to reality in public investment plan

Therefore, recently, at the twenty-second session, the 16th City People's Council for the 2021-2026 term approved the adjustment of the 2025 public investment plan and updated and adjusted the 5-year public investment plan for 2021-2025 at the city level.

To make capital allocation closer to reality, the City People's Council delegates requested the City People's Committee to improve the quality of reviewing, preparing and proposing adjustments to the plan.

Scene of the twenty-second session of the Hanoi People's Council, term XVI, 2021-2026. Photo: Viet Thanh

Not disbursing all capital plan as expected

According to the report of the Hanoi People's Committee, as of April 20, the disbursement of public investment capital in 2025 only reached 11.8%, not meeting the requirements. Of which, some projects encountered difficulties and problems, and did not fully disburse the capital plan as planned (18 projects had land issues, 11 projects had slow procedures).

Therefore, the City People's Committee proposed to submit to the People's Council an adjustment to reduce the capital plan of projects that are not expected to fully disburse the plan in 2025; at the same time, adjust the capital plan for new projects, transitional projects that have completed capital arrangement procedures, have capital needs for implementation, and have good disbursement capacity, such as: Tu Lien Bridge Project, Ngoc Hoi Bridge, Thuong Cat Bridge, urban railway line No. 5, expansion of Linh Nam Road, construction of Tam Trinh Road, etc.

The reason for capital adjustment, according to Standing Committee member of the City Party Committee, Vice Chairman of the City People's Committee Nguyen Trong Dong, is to promptly meet resources to implement key projects, contributing to the implementation of the economic growth target of 8% or more; serving the political tasks of Hanoi in 2025 and the following years. The adjustment plan does not change the total capital of the 5-year medium-term plan 2021-2025 and the 2025 plan that has been approved by the City People's Council.

Head of the Economic - Budget Committee of the Hanoi People's Council Ho Van Nga said that although the City People's Committee has issued many instructions to speed up the implementation and disbursement of projects, the progress of many projects and works has not met requirements. According to the review, by the end of April 20, the disbursement rate of basic construction investment projects through the State Treasury of Region I only reached 8.7% of the 2025 plan, so the City People's Committee has proposed to adjust the capital of many projects down.

In addition, members of the Economic - Budget Committee of the City People's Council also said that the City People's Committee needs to explain the fact that many projects have been adjusted to extend the implementation time, determined to be completed in 2025, but the allocated capital only reaches about 60-75% of the total approved project investment.

Limit multiple plan adjustments

According to Director of the Department of Finance Nguyen Xuan Luu, the city was assigned a capital plan for 2025 of VND 87,130 billion, 1.13 times higher than in 2024, 2.09 times higher than the plan assigned by the Central Government in 2021. With a large amount of work, from the beginning of 2025, the City People's Committee has directed the drastic implementation of the plan; issued a detailed plan for disbursement progress each month; grasped difficulties and obstacles and directed the removal of all projects assigned in the medium-term plan and in 2025. At the same time, the City People's Committee directed the division of capital, shortening the time to handle administrative procedures, especially public investment procedures; divided into "green lanes", requiring processing within 24 hours for a number of important projects.

However, during the implementation process, some projects still face difficulties and obstacles, and are not expected to achieve the set progress. Therefore, the City People's Committee proposed to reduce the capital plan of projects that are expected to not fully disburse the capital plan assigned in 2025, based on the assessment of implementation capacity, difficulties, obstacles and implementation of remedial measures; projects with reduced capital demand due to reduced bid package estimates; or some projects with delayed procedures at the end of 2024, so it is expected that the full capital plan will not be disbursed by now.

For example, the Hanoi Museum Project proposed a reduction of 35 billion VND due to a reduction in the estimated budget for package 44 (indoor exhibition content) when selecting a contractor. The investment project to build a level-separated intersection between Ring Road 3.5 and Thang Long Avenue (Hoai Duc District) proposed a reduction of 120 billion VND. The project to build the Thang Long Avenue expressway, the section connecting National Highway 21 to the Hanoi - Hoa Binh expressway, proposed a reduction of 199 billion VND, due to problems in site clearance, affecting the construction progress.

Reporting to the City People's Council delegates on this content, Vice Chairman of the City People's Committee Nguyen Trong Dong said that some projects have difficulties and obstacles in site clearance, so they are not expected to be completed in 2025, such as: Project to build 40m and 48m roads connecting Viet Hung New Urban Area to Ngo Gia Tu Street (Long Bien District); Project of 3 roads B=17.5m from Ngo Gia Tu to Thuong Thanh Urban Area (Long Bien District). The project to build traffic routes in the area approaching the Central Maternity Hospital, Facility 2, Central Children's Hospital, Facility 2 (Quoc Oai District) proposed to reduce the capital plan for 2025 because the technical design, construction drawing design, and estimate have not been completed so far, so the progress is not as expected.

To ensure that projects are implemented according to plan, Vice Chairman of the City People's Committee Nguyen Trong Dong affirmed that in the coming time, the City People's Committee will continue to strengthen discipline, order, and responsibility in implementing projects and disbursing assigned capital plans. In particular, the City People's Committee focuses on improving the quality of reviewing, preparing and proposing plan adjustments, and limiting multiple plan adjustments. For projects under the national target program on new rural construction, the City People's Committee will have solutions to strengthen monitoring of implementation progress.

Source: https://hanoimoi.vn/bo-tri-von-sat-thuc-tien-trong-ke-hoach-dau-tu-cong-701939.html