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Flexible regulation of capital sources for public investment projects

Việt NamViệt Nam21/09/2023

On the afternoon of September 21, Deputy Prime Minister Tran Hong Ha chaired a meeting of the Government's Working Group No. 2 working with 29 ministries, branches and localities on the disbursement of public investment capital.

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Deputy Prime Minister Tran Hong Ha requested ministries, branches and localities to clearly identify difficulties in disbursing public investment capital at which level and propose solutions and specific measures - Photo: VGP/Minh Khoi

According to the Deputy Prime Minister, with the working mechanism of Government - ministries, branches - localities, many working groups established by the Prime Minister have gone to localities to remove difficulties and obstacles, creating clear changes in the disbursement of public investment capital.

At the meeting, Deputy Prime Minister Tran Hong Ha requested leaders of ministries, branches and localities to review the implementation of the Prime Minister's instructions, especially the results of resolving difficulties and problems in the past time to speed up the disbursement of allocated public investment capital in 2023. In addition, there are recommendations and proposals to resolve issues related to the authority of the National Assembly , the Government or the need for inter-sectoral coordination, disbursement mechanisms of ODA capital sources, etc.

"There is very little time left from now until the end of the year, so you need to clearly state the difficulties at which level and propose how to solve them, with what solutions and measures?", the Deputy Prime Minister emphasized.

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The disbursement rate of public investment capital of ministries, branches and localities under Working Group No. 2 is currently higher than the national average - Photo: VGP/Minh Khoi

Disbursement progress is higher than the national average.

Deputy Minister of Planning and Investment Do Thanh Trung said that the total state budget investment plan for 2023 assigned by the National Assembly and the Prime Minister to 29 ministries, branches and localities under Working Group No. 2 is VND 241,088,964 billion. The detailed allocated capital is VND 234,394,655 billion, reaching 97.22%.

According to disbursement data from the Ministry of Finance, the total disbursed capital of 29 agencies is 104,915,882 billion VND, reaching 43.52% (higher than the national average of 39.41%).

Of which, 10 agencies disbursed above the national average; 13 agencies disbursed low (10-39.41%); 6 agencies disbursed very low (below 10%).

Some ministries and local sectors proposed to adjust the capital allocation down, such as the Ministry of Education and Training (VND 271.028 billion); Ministry of Science and Technology (VND 53.712 billion); Ministry of Labor, Invalids and Social Affairs (VND 1,293.263 billion); Ministry of Natural Resources and Environment (VND 312.498 billion); Ministry of Information and Communications (VND 402.968 billion); Vietnam Cultural and Tourist Villages Management Board (VND 83.305 billion); Quang Binh (VND 81.25 billion); Phu Yen (VND 241.498 billion in foreign capital and VND 164.169 billion in capital from local budget deficit); Khanh Hoa (VND 304.832 billion in foreign capital...

Deputy Prime Minister Tran Hong Ha requested that some ministries, branches and localities that have slow disbursement and proposed large reductions in allocated capital must clearly explain the reasons and propose solutions.

Will assess the readiness of public investment projects

The problems reported by ministries, branches and localities related to the slow progress of site clearance and resettlement in some localities, with many issues arising beyond their authority. The implementation of projects in the Socio-Economic Recovery and Development Program (Recovery Program) has been slow in assigning capital plans and the disbursement time of capital plans is short.

Due to the nature of state budget spending plans being assigned at the beginning of the year, projects must have a volume to be able to disburse, so the overall disbursement progress in the first months of the year is relatively low and will be accelerated in the last months of the year.

Some other causes are specific and specialized (important national projects, historical and cultural relics, etc.). Ministries and local specialized agencies need to proactively consider and resolve them according to their functions and tasks.

Besides, localities have not been proactive in reserving land for site clearance and resettlement, leading to slow implementation of projects (when approved).

Project preparation is still slow and of low quality. There are still projects that are expected to be allocated capital but have not yet completed investment procedures, so they cannot allocate all the assigned capital plan and have the volume to disburse.

The capacity and qualifications of some officials do not meet the requirements in: Project management, limited understanding of land law, investment, construction, state budget, etc., leading to the need for a lot of time to research, process and have to get opinions from many other agencies and units.

Leaders of the Ministry of Natural Resources and Environment, Ministry of Finance, and Ministry of Planning and Investment discussed and clarified a number of major issues that are delaying the disbursement of public investment capital, especially for large projects or projects using ODA capital such as site clearance, resettlement, conversion of forest land use purposes, environmental impact assessment, material sources for key projects, medium-term investment capital harmonization plan and the Socio-economic Recovery and Development Program, etc.

"The Ministry of Planning and Investment will issue a set of criteria to guide ministries, branches and localities in assessing the readiness level of medium-term public investment projects to determine the needs and disbursement capacity of the projects, thereby overcoming the situation of registering a lot of capital but not being able to implement it," Deputy Minister of Planning and Investment Do Thanh Trung shared.

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Deputy Prime Minister Tran Hong Ha: The amount of allocated public investment capital is still very low compared to actual needs. Leaders must see everything and fully synthesize the needs of their ministries, branches and localities - Photo: VGP/Minh Khoi

Promote responsibility, have flexible and creative solutions

Concluding the meeting, Deputy Prime Minister Tran Hong Ha requested ministries, branches and localities to continue to review and update full data on the progress of public investment disbursement, especially the forecast of the situation in the last months of the year based on the commitment of leaders of ministries, branches and localities with political determination and many flexible and creative solutions. Only then will there be a comprehensive, scientific and accurate "picture" of the situation of public investment disbursement.

The Deputy Prime Minister requested that agencies classify projects that can be accelerated with drastic solutions from now until the end of the year, and clarify the responsibilities of agencies and units that propose and register capital for projects that are not fully prepared, not meeting practical requirements, and not feasible.

"For projects that have not been disbursed due to objective reasons and have not yet ensured efficiency but are still necessary, consider using a part of the allocated capital to prepare new projects well for implementation in the following year," the Deputy Prime Minister noted.

Regarding the direction of removing difficulties for projects using ODA capital, the Deputy Prime Minister requested ministries and branches to urgently work with international partners to unify compensation mechanisms, simplify project adjustment procedures, propose to extend projects facing difficulties due to objective reasons...

Further analyzing the reasons for the slow progress of projects using the Recovery Program's capital, the Deputy Prime Minister said that it is necessary to clarify both the reasons due to poor project preparation and the lack of time to fully implement investment processes and procedures, thereby proposing a plan to maintain this capital source for ongoing projects.

Regarding the difficulty in sourcing construction materials, the Deputy Prime Minister stated: Except for urgent and key projects that are subject to a separate mechanism for exploiting and using material mines, other projects must fully prepare procedures for environmental impact assessment (risk of landslides and flooding), ensure the quality of consulting and surveying material sources for the project, and "not create isolated cases".

The Deputy Prime Minister assigned ministries, branches and localities to continue reviewing and considering extending the implementation period, harmonizing medium-term public investment capital sources or the Recovery Program for projects with good progress.

"Ministries, sectors and localities must promote a sense of responsibility towards the country and the people in disbursing public investment capital. With the same mechanisms, policies and administrative procedures, some places do well, some places encounter difficulties, so comrades should proactively exchange and apply effective lessons and experiences in removing obstacles for their ministries, sectors and localities," said the Deputy Prime Minister, emphasizing that "the amount of allocated public investment capital is still very low compared to actual needs such as in the health and education sectors... Therefore, leaders must see everything and fully synthesize the needs of their ministries, sectors and localities. The coordination of public investment capital must be considered a political goal and task to address urgent needs in current economic and social life."

According to baochinhphu.vn

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