Proposing 5 specific policy groups for investment in construction of road traffic works

Continuing the 6th Session, on the afternoon of October 27, the National Assembly listened to the Presentation and Report on the examination of the draft Resolution on piloting a number of specific mechanisms and policies on investment in the construction of road traffic works.

Authorized by the Prime Minister to report at the meeting, Minister of Planning and Investment Nguyen Chi Dung said that the draft Resolution consists of 10 Articles with the main content including 05 policy groups, each policy will have a pilot list attached.

The National Assembly listened to the Presentation and Report on the examination of the draft Resolution on piloting a number of specific mechanisms and policies on investment in the construction of road traffic works (Photo: NA)

P maximizes local potential and advantages

The first policy proposed by the Government is on the proportion of state capital participating in PPP projects: For road traffic projects, the proportion of state capital participating in investment projects under the public-private partnership method shall not exceed 70% of the total investment of the project.

Explaining this proposal, the Minister of Planning and Investment said that according to current regulations, the proportion of state capital participating in PPP projects does not exceed 50% of the total project investment. However, in reality, some road traffic projects have large total investment, while the demand for transportation is not high, so more state capital participation is needed to ensure feasibility when calling for investment under the PPP method.

In addition, there are some projects passing through the delta area that require a lot of land clearance, accounting for a high proportion of the total project investment. If the proportion of state capital participating in PPP projects is applied according to regulations, it will be difficult to ensure financial efficiency and cannot attract investors to implement under the PPP method.

The proposed policy aims to create more motivation in attracting and mobilizing private investment capital, ensuring project financial efficiency, and attracting investors and credit institutions. The Government proposes a regulation allowing the State capital participation rate to not exceed 70%, similar to the National Assembly's permission to apply the mechanism in Clause 5, Article 4 of Resolution No. 98/2023/QH15 to Ho Chi Minh City. This policy applies to 01 project in Thai Binh province.

The second group of policies proposed by the Government is on the authority to implement investment projects on national highways and expressways passing through localities. Accordingly, the Prime Minister will consider and decide to assign the People's Committees at the provincial level that are capable of arranging investment capital from the local budget (including support capital from the central budget, if any) to be the competent authority to implement investment projects on national highways and expressways passing through their localities.

In fact, many localities have documents proposing to competent authorities to allow them to be assigned as the managing agency to invest in and upgrade national highways and expressways under their management in order to resolve pressing issues regarding local transport infrastructure. However, according to current regulations, localities are not allowed to be the managing agency and use local budgets to invest in national highway and expressway investment projects that are part of the central budget.

"The proposed policy aims to maximize the potential and advantages of the locality, improve the efficiency of using the central and local state budget capital and the responsibility of local leaders; facilitate planning, infrastructure connection, and determine the location of necessary intersections to create space for economic development... This policy applies to 07 projects in the provinces of Son La, Ninh Binh, Hau Giang, Can Tho, Khanh Hoa, and Binh Phuoc" - Minister Nguyen Chi Dung said.

Removing bottlenecks in investment in regional linkage projects

The Government also proposed policy number 3 on road traffic projects across many localities: The Prime Minister considers and decides to assign a provincial People's Committee as the competent authority to implement investment in road traffic projects across many localities and use the budget of this locality to support investment capital for other localities to invest in project implementation.

According to Minister Nguyen Chi Dung, in reality, there are many road traffic projects that go through many localities or projects that cross the boundaries of two localities by bridges and tunnels. According to current legal regulations, one locality is not allowed to decide on investment policies and allocate capital for projects that go through the territory of another locality. If each locality invests in half of the bridge/tunnel, it will not be convenient for project management, causing waste of apparatus, time, investment procedures, etc.

The proposed policy aims to unify the authority of central state agencies to resolve issues related to the scope of two or more provincial administrative units; remove practical bottlenecks in the process of organizing and implementing investment in regional linkage projects and allowing localities to use their local budgets to support other localities to jointly implement one investment project, creating flexibility in budget management, saving implementation time and promoting disbursement of public investment capital, ensuring maximum efficiency in capital use.

"This policy applies to 10 projects in the provinces of Lao Cai, Lai Chau, Bac Kan, Tuyen Quang, Bac Ninh, Hai Duong, Da Nang, Quang Nam, Vinh Long, Ben Tre, Tien Giang, Long An, Soc Trang, Hau Giang, Cao Bang, Lang Son, Ninh Thuan, Lam Dong, Dong Thap" - Minister Nguyen Chi Dung informed.

In addition, the Government also proposed policies on special mechanisms in the exploitation of minerals for common construction materials; on special mechanisms applicable to projects using increased revenue from the central budget in 2022.

On the same afternoon, the National Assembly discussed in Groups two issues: Adjusting a number of contents of Resolution 53/2017/QH14 dated November 24, 2017 of the National Assembly on the Feasibility Study Report of the Land Reclamation, Compensation, Support and Resettlement Project of Long Thanh International Airport; Resolution on piloting a number of specific mechanisms and policies on investment in the construction of road traffic works./.

Tu Giang

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