Challenge of disbursing public investment capital

VCN – 50% of public investment capital must be disbursed in the three remaining months of the year. This is a great challenge, requiring great efforts and determination of the whole political system to achieve this task.
Challenge of disbursing public investment capital

Construction of steel structure on Vinh Tuy 2 Bridge. Photo: Internet

Covid-19 pandemic has great impact on disbursement progress

In 2021, the total public investment capital is more than VND602,237 billion. Of which, the capital plan extended from previous years to 2021 is VND77,568,646 billion, the capital allocated in 2021 is VND524,668.99 billion.

Currently, the disbursement still faces difficulties. According to the Ministry of Finance’s report, by the end of September, the disbursement of the 2021 plan will only reach VND218,550.92 billion, meeting 47.38% of the plan assigned by the Prime Minister. This figure is lower than the same period of 2020.

The ministry’s report showed that by the end of the third quarter, only four ministries and 11 localities reached a disbursement rate of over 60%. Many ministries, central government agencies and local government agencies had low disbursement rate. Up to 36 of 50 ministries and 20 of 60 had a rate below 40%. 20 ministries and two localities had a rate of less than 20%.

The delay in disbursement of public investment capital results from the outbreak of Covid-19 in almost all localities, so the material supply has faced difficulties, especially for imports. Amid the pandemic, the human resources for projects and construction cannot be mobilized due to social distancing in provinces and cities.

Moreover, the prevention and control in some localities has not yet been performed effectively, affecting the circulation of goods and construction materials. This has seriously affected the implementation and disbursement of projects, including projects using public investment capital.

Notably, due to social distancing in provinces and cities, public agencies have worked online, affecting the implementation of works, especially the assessment by specialized agencies, the Ministry of Finance said.

Projects using ODA loans and foreign preferential loans have been seriously hit by the public health crisis because most of their activities are associated with foreign factors, from the import of machinery and equipment to the mobilization of foreign investors, experts, workers, contractors, supervision consultants, construction and technical design consultants.

Other reasons for the slow disbursement of investment capital are obstacles in site clearance, difficulties in bidding and construction, and the sharp increase in the price of construction materials on the market, impacting on the costs of enterprises and construction contractors, and the construction progress of projects.

There needs to be the coordination of the political system

The Ministry of Finance proposed the Prime Minister to assign the Ministry of Planning and Investment to report to the Prime Minister for consideration and submit to the competent agencies to adjust and reduce the capital investment plan of the central budget in 2021 of the ministries, central government agencies and localities that have the disbursement rate below 60% of the plan as of September 30.

This capital will be transferred to other ministries, government agencies and localities to implement key and urgent projects that need to be quickly implemented and disbursed investment capital from the central budget in 2021.

The Ministry of Planning and Investment needs to classify ministries, central government agencies and localities that have a low disbursement due to objective reasons to make suitable proposals, create conditions for those to have capital to implement the project in the remaining months of the years.

Ministries, government agencies and localities must urgently implement the allocation of capital plans in 2021 for eligible new projects, ensuring the allocation of 100% of the assigned plans.

In the near future, ministries, government agencies and localities must be aware of the difficulties due to the impact of Covid-19 pandemic on economic development and people's lives, said Prime Minister Pham Minh Chinh at a nationwide online conference with ministries, government agencies and localities on the disbursement of public investment capital held by the Government's Standing Committee on September 28.

In the three remaining months of the years, more than 50% of the public investment capital must be disbursed. This is a huge challenge, requiring great efforts to achieve the target.

Therefore, the Prime Minister requested ministries, government agencies, and localities to strive to meet the highest target. The whole political system needs to coordinate to implement this task, enhance responsibility of each individual and collective, especially in the spirit of self-reliance, and consider difficulties and challenges as a motivation to overcome difficulties.

The Prime Minister asked to continue to facilitate the circulation of goods and materials, ensuring disease prevention and control.

The localities that are implementing social distancing need to carry out procedures for projects. Localities are required to provide a suitable and effective roadmap to resume operations in a safe, flexible and effective manner.

The Prime Minister requested the Ministry of Finance to continue reviewing and simplifying procedures, shortening the time to control payments, withdraw capital from foreign donors, avoid backlog of documents, and promptly handle obstacles on payment.

By Thuy Linh/Ngoc Loan

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