Removing obstacles in disbursing public investment from foreign capital sources

On May 21, 2024, the Ministry of Finance held a conference with central ministries and branches on the disbursement of foreign capital public investment in the first months of 2024 to remove obstacles and difficulties to promote disbursement.

Disbursement of foreign capital public investment only reached 8.58%

Low disbursement rate

According to reports from central ministries and branches, as of May 15, 2024, the disbursement rate of foreign capital public investment of ministries and branches reached 8.58% of the assigned capital plan, of which 2 ministries and branches had a disbursement rate of over 10% ( Ministry of Transport , Ministry of Agriculture and Rural Development), 8 ministries and branches have not yet disbursed the 2024 capital plan. It is expected that by the end of June 2024, the disbursement rate of ministries and branches can reach about 15-17%, at an average level compared to the same period of the years in the period 2021-2023.

To achieve the above results, Mr. Vo Huu Hien, Deputy Director of the Department of Debt Management and External Finance (DMEF), said that ministries, branches and localities have implemented many drastic measures to direct disbursement work such as: urging investors to register monthly disbursement plans; reviewing and perfecting steering committees to assign ministry leaders to directly monitor and direct the implementation of projects...

In addition, the Ministry of Finance has also synchronously deployed many solutions to support disbursement work, such as: organizing working sessions with ministries, branches, localities, and project owners in progress, thereby promptly recording problems and recommending solutions within its authority; directing to shorten the time for implementing expenditure control and resolving capital withdrawal applications.

However, according to the general assessment of DMEF representatives, the disbursement rate of ministries and branches in the first 6 months of 2024 is lower than the same period in the first 6 months of 2023 (27.2%), the first 6 months of 2022 (15.9%) and higher than the same period in the first 6 months of 2021 (12.11%). Although the number of projects/sub-projects assigned capital plans of 10 ministries and branches is 31 projects/sub-projects, only 14/32 projects/sub-projects have disbursed; 17 projects/sub-projects have been assigned budgets but have not yet disbursed.

Identifying some of the reasons for slow disbursement, Ms. Pham Hong Van, Head of DMEF Central Project Department, said that the main reason still comes from the situation of not having completed volume to disburse such as slow site clearance, slow implementation of bidding, technical design; projects must carry out procedures to adjust investment policies, adjust projects, loan agreements; slow receipt of donor opinions... In addition, in the first months of the year, a number of ministries and branches still focused on disbursing the prolonged 2023 capital plan.

Overview of the Conference

Closely monitor and focus on implementation

Given the above reasons, according to some experts, to achieve the target of disbursing 95% of the public investment capital plan as directed by the Government , in Resolution No. 01/NQ-CP, ministries, branches and project owners need to implement more drastic measures to complete the task.

To speed up the disbursement progress, the Conference agreed on a number of solutions such as closely monitoring progress, focusing on implementing projects that have completed investment preparation work; reviewing to concentrate capital on projects with good disbursement progress or needing to speed up progress to complete on time; urgently handling site clearance problems and other problems within the scope of authority. For proposed solutions that exceed the handling authority of ministries and branches, it is necessary to quickly synthesize and report to competent authorities for consideration and resolution.

2024 is the fourth year of implementing the 5-year Socio-Economic Development Plan 2021 - 2025, a very important year in creating a breakthrough and positive change in implementing the goals of the Socio-Economic Development Plan and the Medium-Term Public Investment Plan for the period 2021 - 2025. Accelerating the progress of implementation and disbursement of public investment capital is of great significance, contributing directly to promoting domestically produced goods, developing infrastructure, removing bottlenecks for development, helping to develop the economy quickly and sustainably.

Therefore, the Ministry of Finance and the ministries and branches participating in the Conference agreed to closely monitor and resolutely implement solutions to accelerate the disbursement of public investment capital, striving to achieve a disbursement rate of at least 95% of the capital plan as set out in Resolution 01/NQ-CP.

Source: https://thoibaonganhang.vn/go-vuong-mac-giai-ngan-dau-tu-cong-nguon-von-nuoc-ngoai-151865.html