10 ministries, branches and localities have foreign capital disbursement rate of 0%

A view of the conference

The disbursement of public investment from foreign capital reached 26.06%

According to information from the Ministry of Finance, the cumulative disbursement of public investment capital from foreign loans in 11 months of the 2022 plan reached 26.06% with VND 9,014.59 billion. Although it is 3 times higher than the disbursement rate in the first 6 months of 2022 (9.12% of the capital plan), the disbursement rate of foreign capital public investment in the first 11 months of 2022 is still much lower than the disbursement result of domestic public investment capital in the first 11 months of 2022.

The Ministry of Finance also said that by November 30, 2022, there were 54 localities and 10 ministries with a disbursement rate of less than 50%, of which six ministries and four localities had a disbursement rate of 0%. By November 30, 2022, the Ministry of Finance received a proposal to reduce the capital plan of 8 of 13 ministries and branches with a total proposed reduction of VND 3,678.5 billion, 35 of 59 localities with a total capital reduction of VND8,804.5 billion.

Regarding the cause of the slow disbursement of foreign capital for public investment, the Ministry of Finance said that the main reason comes from the lack of completed volume for disbursement from all stages of the project implementation process such as not completing investment procedures, carrying out project adjustment procedures; the loan agreement has been adjusted or the investment procedures have been completed but the implementation of programs and projects is slow; problems due to the delay in receiving the sponsor's no-objection or the sponsor's approval for the bidding documents, etc.

Regarding the request for capital return by localities, Ms. Mai Thi Thuy Duong, Deputy Director of the Investment Department (Ministry of Finance) said that this was directed by the Prime Minister in Resolution No. 124, in which, it assigned the Ministry of Planning and Investment to summarize proposals and recommendations of ministries, branches and localities when increasing or decreasing capital to report to competent authorities for consideration and a decision.

The Ministry of Finance has also repeatedly proposed to implement the direction in Resolution 124, requesting the Ministry of Planning and Investment to summarize and report to the Prime Minister for consideration on this content.

From the perspective of the agency in charge of summing up the downward adjustment data as well as the adjustment of the public investment capital allocation plan, the representative of the Ministry of Planning and Investment said that Document 6224 of the Government Office dated September 20, 2022, assigned the Ministry of Planning and Investment to assume the prime responsibility, coordinate with the Ministry of Finance and ministries, branches and localities, reporting to the competent authorities to promptly harmonize and adjust the 2022 plan.

The view of the Ministry of Planning and Investment is to maintain the request that ministries, central and local agencies that do not return the capital of the assigned central budget investment plan in 2022, overcome difficulties and challenges to promote the disbursement of public investment capital.

Strive to complete the disbursement plan at the highest level

At the conference, the representative of Ho Chi Minh City said that by November 31, 2022, the amount of capital disbursed according to the payment of revenue and expenditure for the allocated ODA project which was adjusted to be VNĐ 917 billion, reaching 35% of the arranged plan. With the on-lending ODA, disbursed VND2,218 billion, reaching 44%. If calculated according to the capital withdrawal application and capital return documents, Ho Chi Minh City has disbursed VND 2,875 billion, reaching 38.13% of the planned capital plan.

The main reason for the slow disbursement of this capital is the slow implementation process due to unpaid acceptance problems, technical infrastructure relocation problems and adjustments to Metro projects lines 1 and 2.

Ho Chi Minh City has sent an official letter requesting to adjust the public investment plan capital of ODA allocated from the central budget to reduce VND 600 billion of the two projects. The city has also established disbursement support teams, and coordinated with departments and agencies in implementation to speed up the disbursement progress, expected to reach 70% of the assigned capital plan from now until the end of the year.

At the conference, a representative of the Ministry of Transport said that in the total capital plan for 2022, the Ministry of Transport was assigned about VND 55,051 billion by the Prime Minister; ODA projects have allocated VND 5,440 billion, of which foreign capital is about VND 4,877 billion, domestic capital is about VND 563 billion.

By the end of November 2022, the results of ODA disbursement of 18 projects with foreign capital (out of a total of 28 ODA projects) managed by the Ministry of Transport reached about VND 2,874.7 billion/4,877 billion of investment capital arrangement, equivalent to about 58.95% of the plan. Accordingly, the remaining foreign capital plan in 2022 needs to be disbursed about VND 2,000.3 billion.

Speaking at the conclusion of the Conference, on behalf of the Ministry of Finance, Deputy Minister of Finance Vo Thanh Hung said that the total disbursement so far has only reached 26.06% of the plan for public investment with foreign capital in 2022. Therefore, the responsibility of ministries, branches and localities in completing the disbursement plan of foreign public investment capital in 2022 is very big.

Accordingly, the Deputy Minister suggested that ministries, branches and localities continue to pay attention and direct the disbursement of public investment capital including foreign capital.

For problems related to the responsibilities of governing units such as approving investment for approved projects to adjust investment policies, directing project owners to accelerate project implementation, discussing with donors in early granting of no objection, requesting governing units to urgently focus on reviewing and speeding up.

The governing units need to conduct a survey of each project to direct the contractor to focus on organizing the implementation from now until the end of the year, and urgently complete the procedures for payment and withdrawal of capital.

The Deputy Minister emphasized that ministries, branches and localities need to make efforts and determination to solve difficulties and problems to disburse public investment capital in general and foreign loan disbursement in particular in 2022 at the highest level, creating conditions for the economy to continue to recover and develop sustainably.

With its responsibilities, the Ministry of Finance will actively coordinate with ministries, sectors and sponsors to handle problems or report to competent authorities for a decision; simultaneously, the Ministry will direct financial institutions to proactively implement solutions to promote the disbursement of public investment capital in general and foreign loans in particular.