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From now to the end of the year, HCM City accelerates the disbursement of public investment capital. Illustrative photo

Many projects have not been disbursed

According to HCM City State Treasury, in the eight months of 2020, many investors disbursed at a high rate, but there were also many units with low disbursement, and even some projects that had not yet disbursed.

As of August 23, a number of units with high disbursement rate was: Administration Department T78, planned capital was VND 38 billion, disbursed capital was VND 38 billion (100%); HCM City Procuratorate School, planned capital wasVND 25 billion, disbursed capitalwas VND 22 billion (90%); Saigon- HiepPhuoc Port Company, planned capital was VND 41 billion , disbursed capital was VND 33 billion VND (80%); 175 Military Hospital, planned capital was VND 1,130 billion, disbursed capital was VND 821 billion ( 73%); and for Cuu Long Corporation, planned capital was VND 627 billion, disbursed capital was VND 405 billion, (65%).

There were some units with low disbursement rate of less than 50% of the assigned annual capital plan; even some units have not implemented disbursement. The Management Board of Construction and Investment Projects in Thu Duc had a capital plan of VND 617 billion, but until now, it has only disbursed VND 358 million (0.06%); the management board for Waterway Project had a capital plan of VND 147 billion, but it has not yet implemented disbursement, and the People's Committee of Di An City (Binh Duong) had a capital plan of VND 100 billion, but disbursement was 0%.

For projects using local budget funds, as of August 23, many projects have not yet been disbursed. District 3 Site Clearance and Compensation Board, had a capital plan of VND 265 billion, but so far it has not implemented disbursement; the Department of Planning and Architecture had a capital plan of VND 100 billion, yet the disbursement was 0%; Saigon Zoo and Botanical Garden had a capital plan of VND 100 billion, disbursement was 0%; Urban Traffic Management Center had a capital plan of VND 154 billion, disbursed capital was VND 9 billion (6%) and Saigon Water Corporation had a capital plan of VND 286 billion, while the disbursed capital was VND 38 billion (13%) .

Assessing the causes of slow disbursement, HCM City State Treasury currently does not encounter any difficulties in disbursement of public investment capital, because the Government’s regulations on the process of controlling public investment capital spending are very clear.

For the Metro Line 1 construction project (Ben Thanh - SuoiTienline), the ODA from the central budgetwith a capital plan of VND 2,185 billion has not yet been disbursed. According to the report of HCM City Urban Railway Management Board, it was due to that HCM City People's Committee is currently proposing to the Prime Minister a method to determine the value of loans in original currency described at the decision approving the investment project.

For Some projects, the investor said due to problems in compensation, site clearance, the compensation being related to many agencies,the disbursement have been slow. In addition, the compensation policy has many shortcomings, in cases of exceeding the estimate, it must be revised.

Progress must double

According to Director of HCM City State Treasury Nguyen Hoang Hai, the time from now until the end of the year is short, while the capital plan subject to disbursement is worth about VND 20,859 billion VND as calculated by HCM City State Treasury.

Accordingly, to disburse 100% of the assigned capital plan, an average of VND 907 billion must be disbursed each week. However, in recent weeks the disbursement rate was very low, the week withthe highest disbursement rate was VND 605 billion and the week with the lowest disbursement rate was about VND 308 billion. Therefore, the pressure on disbursement at the end of the year is still remarkable and progress must double.

To accelerate the disbursement of public investment capital in the remaining months of 2020, contributing to the completion of the assigned 2020 capital plan, HCM City State Treasury requests investors and project management boards review completed projects that are required to make final settlement to ensure the specified time; and solve problems arising in the settlement process.

For a new start-up project, the investor prepares a design and cost estimate file in accordance with regulations; approves and selects a contractor to construct the project soon; complies with the provisions of the Bidding Law, ensuring that the bidding will select contractors and investors in accordance with the prescribed order and time to improve the construction quality and capital-using efficiency; resolutely handles strictly and promptly contractors violating the progress of the stages and breaking the terms of the signed contract.

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Works with relevant units to handle projects that still have problems in site clearance to soon hand over the site to construction contractors; take measures to speed up completion of the dossier (from the addition, adjustment, verification and approval of the project, approval of the cost estimate and design to the verification and approval of the arising volume and the acceptance and completion of payment dossiers, etc.) to send them to the Treasury as a basis for control and payment, not to accrue payments at the end of the year, putting pressure on the budget.