Ultimately develop a plan to issue 100.000 billion VND in bonds for major transportation projects

Construction of Tuyen Quang - Ha Giang expressway, section passing Tuyen Quang

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“We are closely monitoring the implementation of the Prime Minister's recent direction on issuing an additional 100.000 billion VND in government bonds for investment in key national projects. We hope this policy will soon come into reality so that capital can be put into traffic construction sites, including important highway projects," said Mr. Tran Chung, Chairman of the Construction Investors Association. road (VARSI) said.

Previously, in Official Dispatch No. 4292/VPC-KTTH dated June 20, 6, Prime Minister Pham Minh Chinh said that in Resolution No. 2024/NQ-CP dated June 82, 5 on the regular Government meeting May 6 period; Notice No. 2024/TB-VPCP dated May 5, 2024 and Notice No. 231/TB-VPCP dated May 18, 5, the Government and the Standing Government assigned the Ministries of Finance and Transport to ( Transport) to closely coordinate and urgently research and propose the issuance of an additional 2024 billion VND in government bonds to invest in key national projects.

To implement the above policy, the Prime Minister assigned the Minister of Finance to urgently preside and coordinate with the Ministry of Transport, the Ministry of Planning and Investment and relevant ministries and agencies according to their assigned functions and tasks. Review and complete the report on the implementation of the above tasks. “Assign Deputy Prime Minister Le Minh Khai to directly direct this content in the spirit of focus and focus, and handle it effectively immediately, especially projects that have completed procedures and are in need of capital in the transportation sector. new growth drivers and definitely not spread out," the Prime Minister stated clearly.

In early June 6, Minister of Planning and Investment Nguyen Chi Dung signed Official Dispatch No. 2024/BKHDT-PTHTĐT to the Prime Minister on investment plans and upgrading divergent expressway routes to meet regulations. complete tissue. One of the most notable proposals that the Ministry of Planning and Investment proposed to the head of the Government is to allow the issuance of a government bond package of about 4243 billion VND to invest in transport infrastructure projects.

The Ministry of Planning and Investment provides opinions, principles, and criteria for investment in upgrading divergent expressway routes to full scale as follows:

Firstly, invest in expanding 2-lane sections (completed, under investment) to a complete 4-lane scale to ensure traffic safety and synchronization across the entire route. Prioritize sections that are seriously unsafe for traffic (accidents often occur), especially on the Eastern North-South expressway axis, sections with increased traffic causing prolonged congestion, and PPP projects have put into operation (capable of arranging capital sources and favorable investment procedures).

Second, invest in expanding all expressway sections with limited 4 lanes and complete 4 lanes being exploited to the planned scale on the Eastern North-South expressway axis and other expressway sections. Connecting at the gateway to major city centers, reducing congestion and economic and social frustrations.

Third, consistent with the capital source, ability to balance capital and ability to disburse capital in the medium-term and annual public investment plans of the central and local budgets; For PPP projects, it is expected that there will be public investment capital and a plan to mobilize capital from investors participating in the PPP project.

Fourth, in accordance with the provisions of law on public investment, PPP investment, state budget...

Based on the viewpoints, principles and investment criteria for expanding that expressway, the Ministry of Planning and Investment proposed a list of 28 investment projects (23 public investment projects, 2 PPP investment projects and 3 projects managed by Vietnam Expressway Development Investment Corporation - VEC), with a total need of 247.660 billion VND.

According to preliminary calculations, the capital need to invest in upgrading and expanding 23 projects, including 21 North - South expressway projects and 2 component projects of Tuyen Quang - Ha Giang expressway is VND 181.403 billion. . The capital need to expand the two projects Hoa Lac - Hoa Binh (adjusting investment policy) and Ho Chi Minh City - Trung Luong - My Thuan is 2 billion VND. Capital needs to expand 43.162 expressways managed by VEC are Hanoi - Lao Cai section Yen Bai - Lao Cai; Ho Chi Minh City - Long Thanh - Dau Giay and Cau Gie - Ninh Binh are 3 billion VND.

The Ministry of Planning and Investment said that with central budget capital, the medium-term public investment plan for the period 2021-2025 is expected to balance VND 15.506 billion from capital to increase medium budget revenue. Central budget revenue in 2022 and expected to increase central budget revenue in 2023 for 5 projects including: Cam Lo - La Son, La Son - Hoa Lien, Tuyen Quang - Ha Giang section through Tuyen Quang province, Tuyen Quang - Ha Giang section through Ha Giang and Cao Bo - Mai Son provinces.

"The missing capital for 18 projects to upgrade and expand the Eastern North-South Expressway from 4 limited lanes to 4 complete lanes to a planned scale of about 165.897 billion VND", representative of the Ministry of Planning and Investment. Tu said.

This is the reason why the Ministry of Planning and Investment proposed that the Government allow the issuance of a government bond package of about VND 165.000 billion to invest in transportation projects, with the top priority being investment in expanding these projects. Limited 4-lane, complete 4-lane expressway project on the North-South expressway according to the planned scale, ensuring to meet actual passenger and goods transport needs in the future with a long-term vision above. 20 years.

Clear criteria for building a list

It is known that the Ministry of Transport and the Ministry of Finance are urgently conducting research to develop a list of projects expected to issue government bonds.

In addition to the fact that the issuance scale is limited to 100.000 billion VND and because government bond capital is issued for direct investment in key national projects that must pay interest, it is necessary to calculate and research. Be careful to choose a project portfolio that ensures investment efficiency.

According to leaders of the Ministry of Transport, the Ministry expects the project list to meet the following criteria: must be works and projects of key significance, in accordance with planning and resolutions of the Party and State; Convenient investment procedures, construction can be implemented so that disbursement can be made immediately upon issuance of government bonds, avoiding waste; Expressway sections with high traffic volume, contributing to reducing congestion and traffic accidents with the number 1 priority being the gateway routes to large city centers, the Eastern North-South expressway, and the trunk expressways. vertical, horizontal axis; Divergent 2-lane expressways need to be expanded according to the direction of the National Assembly and the Prime Minister in Official Dispatch No. 16/CD-TTg dated February 21, 2.

“Based on these criteria, the Ministry of Transport will continue to coordinate closely with the Ministry of Finance and the Ministry of Planning and Investment in the process of developing criteria, investment plans, and disbursement needs for important projects. National point of using government bond capital, ensuring progress, quality, and investment efficiency," said the leader of the Ministry of Transport.

In Official Dispatch No. 7273/BTC-DT sent to the Prime Minister in mid-July 7, Mr. Nguyen Van Khang, Deputy Minister of Finance, said that issuing government bonds is a source of domestic borrowing for the central budget. , used to offset expenses for development investment and other purposes according to regulations; There are currently no regulations on issuing government bonds for a specific project or package of projects.

The Ministry of Finance believes that in the case of issuing government bonds for a list of specific projects as proposed by the Ministry of Planning and Investment, it is necessary to report to the competent authority for approval of the policy before reporting. The National Assembly considers and decides.

In addition, in Notice No. 231/TB-VPCP, Notice No. 250/TB-VPCP and Resolution No. 82/NQ-CP, the Government Standing Committee assigned the Government to research and propose to issue an additional 100.000 billion VND. Government bonds for investment in key national projects.

However, in Document No. 4243/BKHDT-PTHTĐT, the Ministry of Planning and Investment proposed to issue a government bond package of 165.000 billion VND, 65.000 billion VND higher than the Government's direction. Therefore, relevant ministries and branches need to clarify the need and ability to implement and disburse funds from this issuance source in each year and period.

Leaders of the Ministry of Finance also requested the Ministry of Transport and the Ministry of Planning and Investment to specifically report to the Government the ability to absorb and disburse capital of each project each year to determine the need to issue bonds. Government in 2025 and each year in the period 2026-2030 to avoid the situation of issuing but not disbursing, having to transfer sources and pay interest, causing waste and loss of state budget.

According to the representative of VARSI, the Ministry of Finance's concerns are something that can be shared, but from the reality of implementing the North-South Expressway projects in the East, it is carried out with the spirit of "only work, no backtracking". "overcome the sun, overcome the rain"; "Eat quickly, sleep quickly", construction "3 shifts 4 crews", construction progress of highways is only 18 - 20 months.

"If the investment preparation work is implemented quickly and solves the problem of premises and materials well, the disbursement target of 100.000 billion VND in the period 2025 - 2026 is not an insurmountable challenge", VARSI representative analyzed.