Hanoi: The biggest problem in disbursing investment capital is still site clearance.

According to the report of the Hanoi People's Committee on the implementation and disbursement of the 2025 public investment plan sent to Working Group No. 2 of the Government and the Ministry of Finance , the biggest obstacle in implementing the capital plan is still site clearance.

The focus is on determining the origin of the land and the price of the land. People have not agreed with the compensation plan.

In addition, there are a number of other policy problems. The transitional process of implementing the Land Law still has many problems and shortcomings, due to the difference in compensation levels and resettlement areas of cases with decisions approving compensation, support and resettlement plans before and after August 1, 2024 (households with plans approved according to the provisions of the 2024 Land Law have more advantages), leading to confusion in the process of applying the policy.

The project to renovate and upgrade National Highway 6 (Ba La - Xuan Mai section) starts at Km14 in Ha Dong district and ends at Km38 in Chuong My district. Photo: Quang Thai

Determining the origin of land use is difficult when the land management database system is limited and fragmented; basic archived records are in paper form, and in some places, cadastral maps do not have the stamp of the competent authority.

For projects using ODA loans and preferential loans from foreign donors, only after the project is approved are they eligible to negotiate loan agreements and carry out related procedures. In reality, the time to complete negotiations or adjustments often takes 12-18 months.

Some projects facing specific difficulties are the investment project to build Hanoi urban railway line 2, Nam Thang Long - Tran Hung Dao section; and the investment project to build Yen Xa wastewater treatment system.

Therefore, the Hanoi People's Committee proposed that for the Hanoi urban railway project, line 2, Nam Thang Long - Tran Hung Dao section, the Ministry of Finance work and negotiate with JICA in parallel with the project adjustment approval process to ensure that after the project is approved, there is enough capital to implement the bidding.

With the Yen Xa wastewater treatment system project, which has been approved for adjustment as a basis for signing the second additional loan agreement, the Ministry of Finance will negotiate and sign the additional loan agreement, which is expected to take about 6 months.

The City People's Committee requested the Ministry of Finance to report to the Prime Minister for approval of the policy allowing the Hanoi City People's Committee to advance capital from the city budget to pay for work items using ODA capital while carrying out procedures for signing additional loan agreements...

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The city's public investment plan for 2025 assigned by the Prime Minister is VND87,130 billion (1.13 times higher than the 2024 plan), accounting for 10.5% of the total capital of the country allocated by the National Assembly (VND829,365 billion).
The total disbursement of the city's 2025 public investment plan as of May 31 was VND 17,619.9 billion, reaching 20.2% of the plan.
Of which, the disbursement result of the central budget capital portion was 390.5 billion VND, reaching 2.7% of the plan; the disbursement result of the local budget balance capital portion was 17,229.4 billion VND, reaching 23.7% of the plan.

Source: https://hanoimoi.vn/ha-noi-vuong-mac-lon-nhat-trong-giai-ngan-von-dau-tu-van-la-giai-phong-mat-bang-704778.html