Hanoi adjusts an increase of 3,840 billion VND for the Ring Road 4 project

With 100% of the delegates present in agreement, the 11th session of the 16th Hanoi People's Council held on the morning of March 10 passed the Resolution adjusting the 2023 City-level Public Investment Plan.

According to the resolution, the city-level public investment plan for 2023 was approved and adjusted, including a reduction of VND 4,240 billion in compensation and resettlement funds when the state acquires land (of which the central budget is more than VND 1,999.9 billion).

The City People's Council also resolved to increase 4,240 billion VND to allocate capital for tasks and projects, of which, for the Ring Road 4 - Capital Region Construction Investment Project alone, 3,840 billion VND was allocated, including: Component Project 1.1 is 3,290 billion VND (of which, the central budget source is more than 1,999.9 billion VND) and Component Project 2.1 is 550 billion VND; increase 100 billion VND for investment preparation capital paid under a flexible mechanism; increase 200 billion VND for project settlement capital paid under a flexible mechanism; arrange 100 billion VND to carry out technical design, construction drawing design, project estimate preparation, payment under a flexible mechanism.

The Resolution of the Hanoi People's Council also agreed to allow the implementation of two flexible payment mechanisms in the 2023-2025 period for investment preparation capital for investment projects implemented under the form of public-private partnership (PPP) and capital for technical design, construction drawing design, and project estimates.

Specifically, regarding the flexible payment mechanism for investment preparation for investment projects implemented in the form of public-private partnership (PPP): The subjects of application are investment projects in the form of PPP in the list of investment projects in the form of PPP approved by the City People's Council and assigned by the City People's Committee to prepare for investment in the period 2021-2025.

The condition for implementing this mechanism is that the projects have been approved by competent authorities for investment preparation tasks in the 2021-2025 period and have investment preparation cost estimates approved by competent authorities in accordance with regulations.

The City People's Council also clearly stipulates payment for the above areas, including: Flexible payment of investment preparation costs for investment projects implemented under the PPP form within the total capital allocated for investment preparation according to the annual public investment plan for the period 2023-2025 and the medium-term public investment plan for the period 2021-2025 of the city approved by competent authorities, regardless of the capital allocation level of each project and ensuring conditions according to current regulations of the State. The content of investment preparation costs of investment projects implemented under the PPP form is according to the State's regulations.

Regarding the flexible payment mechanism for the implementation of technical design, construction drawing design, and project estimates, the city-level public investment projects have been approved by competent authorities for investment according to regulations, are on the list of the 5-year medium-term public investment plan 2022-2025 approved by the City People's Council, have not been allocated an annual capital plan and have been allocated additional capital if the capital demand exceeds the allocated capital plan, it is necessary to arrange a sufficient capital plan to establish technical design, construction drawing design, and project estimates.

The payment regulations for this project are to flexibly pay the costs of technical design, construction drawing design, and project estimates in the annual public investment plan for the period 2023-2025 according to the approved progress and estimates. The costs of technical design, construction drawing design, and project estimates must be within the total investment of the project approved by the competent authority and must comply with current State regulations.

At the mid- and late-year meetings of 2023, 2024, and 2025, the City People's Committee will submit to the City People's Council for approval the official annual capital plan for each project that has implemented the above-mentioned flexible payment mechanism, to switch from advance payment to capital allocation for basic construction investment, ensuring compliance with the provisions of Clause 2, Article 7 of Decree 99/2021/ND-CP dated November 11, 2021 of the Government .

Previously, presenting the Proposal of the City People's Committee, Director of the Department of Planning and Investment Le Anh Quan said that the City People's Council issued Resolution No. 37/NQ-HDND dated December 10, 2022 on the local budget estimate for 2023, after which the City People's Committee assigned the City-level Public Investment Plan for 2023 (hereinafter referred to as the Plan) in Decision No. 4969/QD-UBND dated December 10, 2022.

According to Resolution No. 37/NQ-HDND, Decision No. 4969/QD-UBND, the city has assigned a capital disbursement plan according to the flexible payment mechanism for investment preparation work of 50 billion VND, planning tasks of 200 billion VND, compensation for resettlement when the State reclaims land of 4,422 billion VND and payment for completed projects of 100 billion VND. Up to now, 100% of the investment preparation capital plan and 80% of the payment capital plan for completed projects assigned at the beginning of the year implementing the flexible payment mechanism have announced the capital plan and disbursement for each project. Currently, units have proposed additional capital needs to carry out investment preparation work, payment and payment, and proposed additional capital plans to establish technical designs and construction drawing designs.

Total number of projects submitted for investment approval: 21 projects (2 group A projects, 13 group B projects, 6 group C projects) with a total estimated investment of over 14,604 billion VND in 6 fields. Of which, 20 projects (2 group A projects, 13 group B projects, 5 group C projects) use the City budget with a total investment of over 14,535 billion VND with the medium-term capital plan demand for 5 years 2021-2025 of over 7,363 billion VND.

A group C project using the Nam Tu Liem district budget with a total investment of 69.3 billion VND has been balanced in the 2021-2025 medium-term public investment plan of the district level with the 5-year medium-term plan capital of 2021-2025 of 69.3 billion VND.

Regarding approval of investment policy adjustment, the total number of projects submitted for approval of investment policy adjustment are 4 group B projects in the transport sector, adjusting the total investment to increase with the total estimated adjusted investment being over 1,274 billion VND. The approved 5-year medium-term public investment plan for 2021-2025 is 608.7 billion VND, the need to supplement the 5-year medium-term public investment plan for 2021-2025 is 115 billion VND.

The City's 5-year medium-term public investment plan for 2021-2025 was first approved by the City People's Council in Resolution No. 21/NQ-HDND dated September 23, 2022 and updated and adjusted in Resolutions No. 28/NQ-HDND dated December 10, 2021; 02/NQ-HDND dated April 8, 2022 on investment plans in 03 areas: 07/NQ-HDND dated May 20, 2022; 21/NQ-HDND dated September 12, 2022; 37/NQ-HDND dated December 10, 2022. Up to now, the total source of medium-term public investment plan is: 364,678,301 billion VND, of which the district level is 85,837 billion VND, the city level is 278,841,301 billion VND.

To ensure the completion of the targets and objectives of socio -economic development for the period of 2021-2025, as set out in the Resolution of the City Congress, the City People's Committee is directing a review of resources and the implementation status of the medium-term public investment plan to promptly have solutions to promote implementation and ensure sufficient investment resources for the medium-term and annual public investment plan.

Notably, in the transport sector, the estimated source of the 5-year medium-term public investment plan for 2021-2025 is over VND 148,110 billion, including VND 132,810.555 billion with detailed capital allocation for projects; VND 15,300 billion with detailed capital allocation for 4 projects, of which VND 1,700 billion is reserved for the project to build Ring Road 2.5 from Nguyen Trai (National Highway 6) to Dam Hong.

Proposal to approve investment policy for 3 projects (total estimated investment of 12,363,044 billion VND), estimated 5-year medium-term capital plan demand 2021-2025 of 6,110 billion VND.

Of which, 1 group A project (investment in the construction of Ring Road 2.5 from Nguyen Trai (National Highway 6) to Dam Hong) is on the list of projects expected to be implemented in the period of 2021-2025 from a mobilized capital of 30,000 billion VND and is detailed with a source of 1,700 billion VND in Report No. 404/BC-UBND dated November 18, 2022 of the City People's Committee and the City People's Council approved in Resolution No. 37/NQ-HDND dated December 10, 2022. Ensure submission to the People's Council at the meeting in March 2023.

1 group A project (Construction of Thuong Cat Bridge and the road at both ends of the E-commerce Bridge is expected to cost 8,298 billion VND). This is an important traffic project, invested to connect and open the Ring Road 3.5 and is on the list of new projects that need to accelerate investment preparation progress and allocate annual capital according to the actual progress of the project in Resolution 21/NQ-HDND dated September 23, 2021. The medium-term capital plan demand for 5 years 2021-2025 is 3,750 billion VND.

1 group B project (Construction of Ring Road 3.5 from Thuong Cat Bridge to National Highway 32 - TM is estimated at 1,495 billion VND). This is an important traffic project, invested to connect and open Ring Road 3.5 and is on the list of new projects that need to accelerate investment preparation progress and allocate annual capital according to the actual progress of the project in Resolution 21/NQ-HDND dated September 23, 2021. The medium-term capital plan demand for 5 years 2021-2025 is 660 billion VND.

The medium-term capital plan of the transport sector does not ensure the ability to balance the above two projects. However, in Resolution No. 37/NQ-HDND dated December 10, 2022, the City People's Council decided to reserve resources to implement 08 key projects with a total investment of 40,456.8 billion VND (including: (1) Construction of Thu Do University; (2) Water collection system (S1 basin) to Yen So wastewater treatment plant; (3) Construction of Lien Mac key works cluster; (4) Renovation and upgrading of Road 70: Ha Dong - Van Dien section; (5) Tu Lien Bridge and the road from Tu Lien Bridge to Hanoi - Thai Nguyen Expressway; (6) Tran Hung Dao Bridge; (7) Construction of rainwater drainage system in the left basin of Nhue River; (8) Construction of drainage in Ha Dong district in Huu Nhue basin) and other important projects of the City (from the mobilized source of 30,000 billion VND) is 11,385 billion VND.../.

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