Continue to publicly disburse public investment capital, many key projects have low rates

The Ring Road 4 Project - Hanoi Capital Region has a total disbursement rate of 16.7%. Illustrative photo.

The total state budget capital plan for 2024 allocated to important national projects and works, key transport sector projects and inter-regional transport projects managed by localities is VND 144,937 billion, accounting for 21.7% of the total state budget capital plan assigned by the Prime Minister to ministries, central agencies and localities (VND 669,264 billion).

Of which, national and key transport sector projects are VND 112,207.7 billion; inter-regional transport projects are VND 32,730.4 billion. However, by the end of July 31, 2024, these projects have only disbursed VND 43,507.8 billion, reaching 29.7% of the assigned capital plan.

Specifically, key national projects and works in the transport sector disbursed VND 36,362.9 billion, reaching 32.4% of the plan.

4 projects (component projects) under the Ministry of Transport and projects managed by localities had a disbursement rate of over 50% of the plan. 16 projects had a disbursement rate of less than 15% of the plan (of which 3 projects disbursed 0%).

Transporting projects managed by localities disbursed VND 7,144.9 billion, reaching 21.8% of the plan. 13 projects had a disbursement rate of over 50% of the plan. 31 projects had a disbursement rate of less than 15% of the plan. Notably, 2 projects disbursed 0%.

In addition, according to Decision No. 1162/QD-TTg dated October 8, 2023, the Prime Minister has provided additional support to localities of VND 4,000 billion from the central budget reserve in 2023 to implement riverbank and coastal erosion projects in 13 provinces in the Mekong Delta.

However, according to the State Treasury's report, by July 31, 2024, these projects had only disbursed VND 1,397.75 billion, reaching 34.94% of the assigned central budget capital plan. Some localities have a disbursement rate of over 50%.

The Ministry of Finance said that the disbursement period for the central budget reserve capital in 2023 is more than 5 months away, but many localities have low disbursement rates, making it difficult to complete the disbursement plan by the end of the year.

Given the above situation, the Ministry of Finance requests the Ministry of Transport and the People's Committees of provinces and cities to seriously and drastically implement solutions to promote the disbursement of public investment capital in accordance with the Resolutions of the Government and the Official Dispatches of the Prime Minister.

In particular, it requires directing investors, departments, branches, contractors and relevant agencies to review and accelerate the progress of project implementation; speed up procedures for disbursing public investment capital for projects that have not been disbursed and have a disbursement rate lower than the national average as announced by the Ministry of Finance every month. At the same time, proactively review and transfer capital according to authority between projects that are unable to disburse or have slow disbursement to projects with better disbursement capacity and need additional capital.

The Ministry of Finance also requests the Ministry of Transport and the People's Committees of provinces and cities to direct the implementation of advance payment, recovery of advance payment, acceptance and payment of public investment capital in accordance with regulations and as soon as there is volume; strictly manage contract advances in accordance with regulations, ensure effective use, avoid loss and waste of allocated state budget funds, etc.

Regarding the Mekong Delta provinces, the Ministry of Finance requests that localities must complete projects in accordance with regulations by December 31, 2024 at the latest; organize implementation and disbursement of the 2023 central budget reserve fund, which will be supplemented by December 31, 2024 at the latest, in accordance with legal regulations.

In order for the Ministry of Transport and localities to promptly and proactively deploy tasks and solutions to direct and urge the progress of implementation and disbursement of public investment capital in 2024, striving to achieve results of over 95% of the plan assigned by the Prime Minister, the Ministry of Finance publicly disburses works and projects by July 31, 2024.

Specifically, the Ministry of Finance has publicly disclosed the disbursement rate of 38 important national works and projects, key to the transport sector. Notably, many projects and component projects have very low disbursement rates, below 10%. Even the disbursement rate is 0% such as the Hoa Binh - Moc Chau - Son La expressway; Tuyen Quang – Phu Tho expressway construction investment project connecting with Noi Bai – Lao Cai expressway, etc.

According to public data of 85 transporting projects managed by 61 localities, many projects have disbursed 0% such as: the project to build a road tunnel through Hoang Lien pass (Lai Chau); Nhon Trach district inter-port road project, phase 1 (Dong Nai); the project of the traffic route from Bai Goc port (Nam Phu Yen economic zone, Phu Yen province) connecting National Highway 1 to Van Phong economic zone (Khanh Hoa province), etc.

21 coastal, riverbabk erosion projects under the 2023 central budget reserve fund managed by the Mekong Delta provinces also have many projects with low disbursement rates such as: the project of the embankment to protect the residential area of Chau Phong commune (0.21%) and the project of the embankment to prevent landslides on the Bac Kenh Moi road (1.68%) of An Giang province; the disbursement of the project to invest in the construction of Nha Mat embankment from Nha Mat bridge to Nha Mat culvert, City. Bac Lieu (phase 1) reached 3.44% of the assigned capital plan, etc.