Basic construction debt, why (?!) - Part 1: "Revealing" huge debts

(QBĐT) - The massive construction of project works, while not having proactive investment resources for many years, has caused many localities to struggle to resolve many debts and outstanding debts of basic construction (XDCB), with the amount up to tens of billions of VND. Along with that, many urgent construction works are unfinished, because there has not been allocated capital to continue construction and completion, leading to waste and degradation.

In a short time, the two-level government model will come into operation, the district-level government will be dissolved and a new commune-level administrative unit will be established. Localities have conducted statistics and reviewed construction debt to resolve it. However, from here, many localities have "revealed" construction debt of tens of billions of dong.

Cannot help but build

Quang Phong is one of the wards with the largest debt of construction investment in Ba Don town, with an amount of up to more than 54.6 billion VND, with 72 projects. Notably, most of the projects still in debt took place from 2017 and 2018. There are even 23 projects, with an amount of 8.7 billion VND in debt from 2015 and 2016 to present.

Projects with large construction debt, such as: Ward's working hall (debt of 4.6 billion VND), inter-residential group road from Tan Xuan - residential group 1 (debt of 6.3 billion VND), technical infrastructure project for the land fund development planning area of ​​Con Do (debt of 6.2 billion VND).

The construction of the hall, gate, fence, and yard of the People's Committee headquarters of Quang Son commune (Ba Don town) still owes more than 2.3 billion VND.

Chairman of Quang Phong Ward People's Committee Nguyen The Son said that most of the projects were invested in, aiming to complete the criteria for urban construction. Despite being a ward, the revenue is mainly concentrated on land, while the revenue from business and service activities is very little. If there is no planning and auction organization, how can there be resources to invest in completing the set goals? Therefore, from 2017 to 2019, due to high land prices, the locality focused on planning to develop land funds to organize auctions. But when the project was completed, the auction could not be organized.

Similarly, Trung Trach is one of the localities with large debts and outstanding debts of construction investment in Bo Trach district. After review, this locality still owes more than 45 billion VND. It is worth mentioning that many works and projects are still unfinished and have not been constructed because of insufficient funding.

In Quang Phuc Ward (Ba Don Town), there is currently a debt of nearly 22 billion VND, of which the debt from the provincial and town budgets is more than 5 billion VND, the rest is local debt. Chairman of Quang Phuc Ward People's Committee Nguyen Tien Thanh said that most of the investment projects are urgent projects, serving national and local goals, so they cannot be left unimplemented.

Mainly corporate debt

As a disadvantaged locality of Ba Don Town, after many years of efforts and determination, in 2020, Quang Son commune "reached the finish line" of the goal of building a new rural area (NTM). However, the joy of reaching the NTM finish line was not complete, because this locality is "bearing" a debt of nearly 10 billion VND. Specifically, the outstanding debt for NTM construction is nearly 6 billion VND and the debt for XDCB is nearly 4 billion VND. There is an outstanding debt arising from 2018, 2019 until now that has not been paid.

Many land fund projects cannot be auctioned because real estate prices are low.

Chairman of Quang Son Commune People's Committee Tran Van Huyen said that in early 2020, Ba Don Town reviewed and evaluated the goals and targets for new rural construction in the area. Quang Son Commune wanted to complete the goal and needed about 15 billion VND to implement the criteria that had not been met (about 13 projects). Of the 15 billion VND, the locality had to match 50% of the capital (commune budget 35%, social mobilization 15%), while the town budget only supported 4 billion VND. However, when making the investment estimates for the projects, the local government was "startled" because the investment capital was not 15 billion VND but needed tens of billions of VND. Therefore, local officials had to "take their bags and go... beg". Saying "beg" is not quite right, but rather mobilizing and "speaking difficultly" with businesses and construction units to spend money to construct first. After that, the locality will organize an auction of land use rights and make final settlement later. Because at that time, there was an infrastructure project in the area to auction residential land use rights (area of ​​4.7 hectares) that was being prepared for implementation. However, due to the lack of land clearance, this project is still... in the plan and has not been implemented. "It is difficult for a poor commune to do anything. For nearly 10 years, the local budget has not collected any money from the auction of land use rights. Other sources of revenue are not enough to cover expenses. Meanwhile, the demand for investment in construction and completion of works in the area is very large," added Chairman of the People's Committee of Quang Son Commune, Tran Van Huyen.

A construction company director said that because of their connections and to “nurture” long-term business relationships, the company had to “hold its tongue” or “bite the bullet” and borrow money from the bank to undertake construction projects. Many companies now have to take money from one project to “nurture” another and wait for their debts to be paid.

Similarly, Dai Trach commune (Bo Trach) is also carrying a debt of over VND20 billion in construction investment. Chairwoman of Dai Trach Commune People's Committee Nguyen Thi Thu Nga said that the remaining debts are mainly urgent and essential projects to complete the goal of building national standard schools in the area, such as: Dai Phuong Kindergarten (only disbursed 1/5 billion VND of total investment capital), the headmaster's house and parking lot of Primary School No. 2 (only disbursed 1.5/5 billion VND). The disbursed amount is all from the budget of the higher level, the remaining debt is from the local budget and debts of enterprises and contractors.

Duong Cong Hop

>>> Part 2: Urgent project... unfinished

Source: https://baoquangbinh.vn/kinh-te/202506/no-xay-dung-co-ban-vi-dau-nen-noi-bai-1-phat-lo-nhung-khoan-no-khong-lo-2226932/