Why the low rate?

Standing Vice Chairman of the Provincial People's Committee Phan Thai Binh inspected key projects in Duy Xuyen last week. Photo: NP

Low capital disbursement rate

Reporting at a meeting with the Standing Vice Chairman of the Provincial People's Committee Phan Thai Binh last week, Mr. Van Ba Quang - Head of the Duy Xuyen Finance & Planning Department said that in the 2024 public investment plan, the locality will implement the construction of 27 projects from the provincial and district capital with a total investment of nearly 172 billion VND.

To date, 24 projects have had their technical economic reports approved, and 3 projects are submitting their fire prevention and fighting plans for approval.

In addition, Duy Xuyen District People's Committee has assigned the task of investor to localities and units to implement 55 projects under the National Target Program on New Rural Construction (NTM) in 11 communes building advanced and exemplary NTM.

Up to now, the projects have had their technical economic reports approved and capital allocated for construction; 2 projects implementing the advanced NTM district are under construction; 7 projects from the district's regular budget expenditure source.

At the same time, urge localities to establish procedural records to maintain and upgrade the standards of new rural communes from the provincial budget support in the 2024 budget estimate.

In the past 8 months, the disbursement rate of public investment capital in 2024 of Duy Xuyen district was low. Photo: NP

Regarding the implementation of projects under Resolution No. 14 (dated September 21, 2022) of Duy Xuyen District People's Council in 14 communes and towns in 2024, the list has been approved and procedures are being completed for implementation.

Mr. Van Ba Quang said that the total public investment capital plan for 2024 of Duy Xuyen district (including the allowed extended capital) is more than 217.2 billion VND; the total disbursed capital by August 30, 2024 is more than 66.3 billion VND, reaching a rate of 30.54%.

Of which, the capital in 2023 extended to 2024 was nearly 32 billion VND and by the end of August 2024, more than 16 billion VND had been disbursed, reaching 50.38%; the capital in 2024 was more than 185.3 billion VND and by the end of August 2024, more than 50.2 billion VND had been disbursed, reaching 27.12%...

What is the cause?

Duy Xuyen district leaders acknowledged that, in addition to subjective reasons such as investors being slow in establishing documents, investment preparation procedures, selecting contractors, implementing construction..., there are also objective reasons due to many shortcomings in the institutions and policies in the field of construction investment.

The slow progress of project implementation is due to many difficulties and problems. Photo: NP

To be able to disburse the allocated capital, investors must carry out investment preparation, organize contractor selection, site clearance, payment settlement...

All these activities are regulated by various legal provisions such as the Land Law, the Environmental Protection Law, the Bidding Law, the State Budget Law, the Urban Planning Law, the Public Investment Law, the Construction Law, and the Fire Prevention and Fighting Law.

In general, new projects must carry out the design, estimate, and contractor selection steps, which usually take 6-8 months to complete, carry out construction, and disburse the allocated capital.

Mr. Nguyen The Duc - Vice Chairman of Duy Xuyen District People's Committee said that compensation and site clearance is a rather complicated step in project implementation.

In addition, Duy Xuyen district does not have any licensed material mines. Some main materials for construction such as roadbed soil, sand, and construction stone are still scarce and very difficult to access or very expensive compared to the estimated unit price.

Most projects are transferred to a lump sum contract, and the price of raw materials cannot be adjusted in the estimate or signed contract, leading to some contractors being slow to implement and performing construction at a slow pace...

Many difficulties and problems arise in projects in the Dong Duy Xuyen area. Photo: NP

Some investors, especially in localities, are still slow in preparing documents and procedures for investment preparation; the human resources and professional capacity of the specialized departments in the field of investment and construction at the commune level are still limited, so most projects are sent to the specialized construction agencies at the district level for appraisal before approval, affecting the implementation time and disbursement of capital sources...

Standing Vice Chairman of the Provincial People's Committee Phan Thai Binh requested Duy Xuyen district to focus on reviewing and inspecting specific projects; actively removing difficulties and obstacles in site clearance, the supply of common construction materials... to create favorable conditions for contractors to speed up the progress of project implementation.

“For projects that have been allocated investment capital, the district must strengthen inspection and supervision to speed up construction progress, complete settlement documents, and disburse capital. In particular, we must focus on disbursing 100% of the capital from the Central and the province, absolutely not losing capital…” - Mr. Binh noted.

Source: https://baoquangnam.vn/giai-ngan-von-dau-tu-cong-o-duy-xuyen-vi-sao-dat-ty-le-thap-3141237.html