Solving the challenge of disbursing 75,000 billion VND in transportation capital

By the end of September 2024, the Ministry of Transport was assigned by the Prime Minister 71,288 billion VND of the 2024 capital plan and was recently assigned an additional 1,240 billion VND from the increased central budget revenue source in 2022.

In the last months of the year, the rainy weather, combined with difficulties in site clearance and materials, has greatly affected transportation projects. However, at the construction site, investors and contractors are making efforts every day to overcome challenges, speed up the progress of projects and complete the disbursement plan of 75,000 billion VND of transportation capital as planned.

Linking construction output with disbursement

In early November 2024, prolonged rains appeared more frequently, causing many difficulties in the construction of the North-South expressway, Ham Nghi - Vung Ang section.

Chi Thanh - Van Phong project enters the final stage, output is increasing day by day. Photo: Tuong Cao Son.

According to Mr. Nguyen Khac Trung, Director of the Project Management Board, to ensure the early completion date of April 30, 2025, the contractors have made the most of the sunny days to speed up the items. At the construction site, about 1,500 engineers, workers and more than 1,000 motorbikes and equipment have been mobilized, a significant increase compared to before.

"Currently, the average value of contractors' work is nearly 15 billion VND/day and over 100 billion VND/week," Mr. Trung informed.

A representative of the Thang Long Project Management Board said that in August 2024, the Ham Nghi - Vung Ang and Bai Vot - Ham Nghi expressways were approved by the Ministry of Transport to supplement capital of VND 977 billion and VND 800 billion, respectively. The good absorption of capital sources in the two projects contributed to a significant increase in the overall disbursement results. By the end of October 2024, the unit's disbursement reached more than VND 3,700 billion (more than 56% of the assigned capital plan).

Similarly, with 150 workers and nearly 100 locomotives, equipment has been reinforced in the past 2 months, and the construction results of the Quy Nhon - Chi Thanh expressway section are showing many positive signs.

The representative of Project Management Board 85 informed that the average output value is about 14 billion VND/day and about 98 billion VND/week.

Linking construction output with disbursement results, the project management department's steering committee coordinates online with relevant departments to accurately and finalize data, speeding up the procedure processing progress. On average, the time from the time the contractor submits payment documents to the time the documents are sent to the treasury only takes about 3 days. The payment acceptance value usually reaches 85% of the construction value.

Acceptance and early payment to contractors

Entering the sprint phase, striving to reach the finish line in September 2025 (3 months ahead of schedule), construction output at the Chi Thanh - Van Phong project is increasing day by day.

In 2024, despite being one of the ministries and sectors assigned the largest public investment disbursement plan, the Ministry of Transport is one of the ministries with the highest disbursement rate in the country.

The disbursement efforts of the transport sector not only promote the development of transport infrastructure, remove "bottlenecks" of the economy , but also promote many other related industries, create jobs, and contribute to the successful implementation of the GDP growth target in 2024.

Economist, Dr. Dinh Trong Thinh

Average output reached about 60 billion VND/week, an increase of about 10 billion VND compared to normal times. Out of the total capital plan of nearly 3,000 billion VND assigned, the disbursement value of the project reached more than 1,900 billion VND, reaching more than 64% of the plan.

Determining payment acceptance is a prerequisite for cash flow turnover and construction progress acceleration. Payment documents will be processed by the investor within a maximum of 3 working days. According to Mr. Le Quoc Dung, Acting Director of Project Management Board 7, this year, the Chi Thanh - Van Phong Expressway is one of the two projects with the highest capital proportion in the group of projects the unit is in charge of.

After adjustments and additions to the capital plan, the disbursement capital plan assigned by the Ministry of Transport to the unit has reached VND 8,388 billion. By the end of October 2024, the disbursement output reached more than VND 5,600 billion, reaching more than 67% of the plan.

Recognizing that in November and the first half of December 2024, the weather in the project areas will enter the peak of the rainy season, construction will face many difficulties, the leader of Project Management Board 7 said that he has requested construction units to adjust items that are less affected by the weather, and speed up the submission of adjusted estimates for acceptance.

The work of accepting and paying for materials and semi-finished components mobilized and gathered at the construction site has also been promoted, ensuring cash flow for the unit as well as ensuring the project's disbursement plan.

Hold leaders accountable

The Department of Planning and Investment (Ministry of Transport) said that it is estimated that by the end of October 2024, the disbursement output of the Ministry of Transport will reach nearly VND 47,800 billion, reaching 63% of the plan. Of which, the North-South Expressway project phase 2 accounts for a relatively large disbursement proportion, reaching nearly VND 26,500 billion.

The North-South Expressway Phase 2 project accounts for a high proportion of disbursement. (In the photo: Construction of the North-South Expressway Phase 2 through Khanh Hoa ).

Many investors/project management boards have positive disbursement results, higher than the Ministry's average level such as: Project Management Board 6, My Thuan Project Management Board, Ho Chi Minh Road Project Management Board, Vietnam Road Administration...

Since the beginning of the year, the Ministry of Transport has adjusted 4 times for 35 projects, with adjusted capital value of nearly 3,000 billion VND, ensuring sufficient capital for the projects.

Identifying challenges for the disbursement work of the Ministry of Transport in the last months of the year, a representative of the Department of Planning and Investment said that there are four major challenges.

Firstly, the investment and construction procedures go through many stages and steps, taking a long time to process. Next, the work of compensation, support, resettlement, and relocation of technical infrastructure works has many potential risks, affecting the progress and disbursement of projects.

Construction materials are the third challenge. Recently, the National Assembly and the Government have allowed the application of special mechanisms for mining, and procedures have been significantly reduced. However, the supply of materials for some projects is still stuck and has been slow to be resolved, especially in licensing and increasing the capacity of mines.

Finally, the weather is increasingly erratic and difficult to predict, especially when the coming months are the rainy season.

To increase disbursement efficiency in the coming time, the Department of Planning and Investment will continue to advise the Ministry's leaders to implement 5 key solutions. The first is to attach the responsibility of the unit head to the disbursement results, considering this an important criterion to evaluate the level of completion of tasks at the end of the year.

Second, direct investors/project management boards to regularly review detailed disbursement plans for each project and commit to being responsible to the Ministry of Transport for disbursement progress.

Next, investors and contractors are required to concentrate all resources and take advantage of favorable weather to carry out construction; closely coordinate with all levels, sectors, localities and relevant agencies and units in site clearance, resettlement, relocation of technical infrastructure, and exploitation of material mines.

At the same time, urgently complete payment procedures with the State Treasury when the volume is accepted. The final solution is to monitor the monthly disbursement progress, promptly regulate and adjust capital from slow-disbursing projects to projects with faster disbursement.

By the end of September 2024, the Ministry of Transport was assigned by the Prime Minister 71,288 billion VND of the 2024 capital plan and was recently assigned an additional 1,240 billion VND from the increased central budget revenue source in 2022.

It is expected that the Prime Minister will continue to allocate an additional VND3,000 billion to Group B projects that are lacking capital. For the whole year, the Ministry of Transport is expected to be allocated nearly VND75,500 billion.

Source: https://www.baogiaothong.vn/hoa-giai-thach-thuc-giai-ngan-75000-ty-von-giao-thong-192241105104425011.htm