Quang Nam puts quality and efficiency first

Chairman of the Provincial People's Committee Le Van Dung and his colleagues inspected the progress of the project "Developing the historical value of the Huynh Thuc Khang Memorial House".

Necessary

The project to promote the value of the Huynh Thuc Khang Memorial House in Hamlet 1, Tien Canh, Tien Phuoc was approved and subsequently adjusted (2017 & 2022). The total investment after adjustments and additions is nearly 49.2 billion VND (25 billion VND from the central budget and 24.2 billion VND from the provincial budget).

The project implementation process was directed and reviewed by competent authorities, ensuring compliance with central government directives and guidelines (landscape beautification, restoration of original relics in accordance with regulations, etc.).

The project has dragged on for many years, changed investors, experienced slow implementation, lacked the ability to disburse funds, and exceeded the disbursement deadline, resulting in the return of 22.77/25 billion VND to the central budget.

The Ai Nghia (Dai Loc) Western Bypass Project was approved in August 2019. The total investment is 100 billion VND (70 billion VND from the provincial budget). The project implementation period is 2021 - 2025.

The road project from DH3.DL (Dai An) to the administrative center of Dai Loc district was approved and its final adjustments approved in May 2024 with a total approved investment of 60 billion VND (54 billion VND from the provincial budget and 6 billion VND from the district budget).

The project implementation period is from 2021 to 2024. Both projects faced difficulties regarding compensation and land clearance costs. The actual value of damages suffered by the people exceeded the initial estimates, leading to an overspending of the total investment.

The Ky Ha Port Channel Dredging Project (Phase 2) received investment approval from the Provincial People's Council on October 30, 2015. The total investment is nearly 199.5 billion VND, funded by targeted central government budget support, and will be implemented from 2017 to 2020.

The depth of the entire channel from buoy number 0 to Tam Hiep wharf (11km long) will be adjusted and supplemented by dredging to a depth of -10m (nautical chart depth) to ensure that ships of 15,000 tons can reach full load, while ships of 20,000 tons and larger can reduce their load or take advantage of high tides to navigate to Ky Ha and Tam Hiep wharves.

According to Mr. Nguyen Quang Thu, Director of the Department of Planning and Investment, adjusting the investment policy, halting implementation, and completing the procedures for project completion and settlement will open up opportunities for socialized investment and create conditions for the development of local seaports.

The review reports from the Economic and Budget Committee of the Provincial People's Council and the appraisal agency all indicate that the adjustment of investment policies for these four projects is necessary.

According to Mr. Nguyen Duc, Head of the Economic and Budget Committee of the Provincial People's Council, two transportation projects in Dai Loc have increased compensation costs and require additional funding and adjustments to the implementation schedule to match the project completion timeline. The implementation period for the Ky Ha Port Channel Dredging Project (Phase 2) has expired (2017-2023). Time is needed to complete the necessary paperwork and procedures for project completion, therefore, implementation should be halted and the project timeline adjusted.

Regarding the Huynh Memorial House project, the deadline for allocating central government budget funds has passed; provincial budget funds (to replace central government funds) are needed, and the project requires adjustments and additions to some investment items. "Adjusting these projects is necessary and appropriate to the actual situation and to meet investment objectives," Mr. Duc said.

Calculating capital

Changes and adjustments (investment scale, investment capital, project implementation time) are truly necessary to ensure investment efficiency and avoid wasting state budget. However, the concern is where the resources will come from to implement the project.

The Provincial People's Council has decided to halt the implementation of the Ky Ha Port Channel Dredging Project (Phase 2) to finalize accounts, complete project completion procedures, and grant the enterprise the right to continue the investment. Photo: TD

According to the analysis, the provincial budget had to subsidize 22.77 billion VND for the Huynh Memorial House project, the Ai Nghia Western Bypass project increased by 48.4 billion VND (148.4/100 billion VND), and the DH3.DL project increased by more than 35.8 billion VND (95.8/60 billion VND), plus 1.83 billion VND from the provincial budget for the Ky Ha Port dredging project.

According to Mr. Nguyen Hung, Deputy Director of the Department of Planning and Investment, the increased costs for the two transportation projects in Dai Loc will be covered by the district's budget for the years 2024-2025.

Additional funding for the Huynh Memorial House project will be allocated from savings through budget cuts in completed projects, projects with reduced settlement values, surplus funds not needed, projects that are delayed or have been ongoing for many years, projects that have exceeded the allocated funding deadline, and projects that have ceased implementation and do not require the use of remaining planned funds.

“The total investment for the project will be determined in the project adjustment planning phase based on the volume and unit price norms according to current regulations, ensuring that it does not exceed the adjusted total investment approved by the competent authority. The investor needs to calculate a suitable timeframe for the adjusted project implementation, ensuring feasibility and avoiding the need to request an extension of the project implementation time,” Mr. Hung said.

Strengthen inspection and supervision.

Recent inspections and monitoring by the Economic and Budget Committee of the Provincial People's Council have shown that every session of the Provincial People's Council sees requests for adjustments to investment projects.

The provincial budget will review and allocate additional funds to compensate for the central government's recovery of funds from the Huynh Memorial House project.

The main reason for the increased costs is land clearance, indicating that investors have not fully calculated the costs, the project appraisal is weak, the project planning does not take into account unforeseen circumstances, or the project is presented with a small capital scale to easily get approved. Once a project is delayed and prolonged, cost overruns and an increase in the total investment are unavoidable.

Mr. Dang Tan Phuong, Deputy Head of the Ethnic Affairs Committee of the Provincial People's Council, said that compensation and land clearance have been prolonged, and the inventory and assessment of damaged assets have been inaccurate. This has led to a significant increase in compensation and land clearance costs for projects compared to initial estimates, forcing adjustments to the investment plan.

According to Mr. Phuong, this situation should not become a norm. Adjustments to investment policies and capital increases should be minimized. When preparing cost estimates, the compensation and land clearance costs for each project must be calculated accurately and realistically before submission for approval. Investors need to commit to the project's progress and timeline.

Quality and efficiency of project utilization are top priorities, especially for projects that have undergone adjustments. According to Mr. Nguyen Duc, Head of the Economic and Budget Committee of the Provincial People's Council, investors and appraisal agencies need to strengthen their responsibilities and coordinate closely in the preparation and appraisal of project documents, designs, and cost estimates... ensuring investment efficiency and accelerating the completion of procedures according to regulations.

Minimize adjustments to the total project investment after the investment policy has been decided or adjusted. Quality control and supervision, from bidding to construction, must be implemented to minimize waste and investment losses, especially with increasingly limited budgets.

Source: https://baoquangnam.vn/dieu-chinh-chu-truong-dau-tu-4-du-an-quang-nam-dat-tieu-chi-chat-luong-va-hieu-qua-len-hang-dau-3141809.html