(Dan Tri) - The provisions in the draft revised Law on the Capital are expected to help Hanoi mobilize investment resources from loans to focus on developing important projects, including urban railways.
On the morning of November 27, the National Assembly will discuss in the hall the draft revised Law on the Capital City. The draft Law consists of 7 chapters and 59 articles, and is expected to be considered and approved by the National Assembly at the mid-2024 session.
Borrowing capital to build urban railways will be carefully considered.
In a report sent to National Assembly deputies to initially explain the opinions discussed in the group on November 10, Minister of Justice Le Thanh Long said that regarding the financial and budget mechanisms for the capital, National Assembly deputies agreed with many contents related to the financial and budgetary fields in the draft Law.
In addition, some opinions proposed to supplement Hanoi's revenue policy to create resources; regulate the city's debt ceiling (similar to Ho Chi Minh City), and allow the city to issue international bonds.
The elevated section of the Nhon - Hanoi Railway Station urban railway is expected to be operational by the end of 2023 (Photo: Quan Do).
The representative of the agency in charge of drafting the Law, the Minister of Justice, stated that the draft Law stipulates that Hanoi's outstanding loans do not depend on the ceiling limit, total loan amount and annual city budget deficit decided by the National Assembly and assigned by the Prime Minister.
According to Minister Le Thanh Long, this regulation aims to help the city mobilize investment resources from loans to focus on developing important projects.
In particular, in the coming time, Hanoi will promote the development of urban railway routes, the capital demand may reach 1 million billion VND and further is the goal of developing urban railway connections to urban areas in the Capital Region.
According to Minister Long, the provisions in the draft Law can help Hanoi to quickly deploy and synchronize infrastructure, standards, and technical regulations, avoiding fragmentation and slow progress due to dependence on capital sources and technical inconsistencies as currently in projects implemented under ODA loans and budget capital.
"The city will carefully consider the borrowing, develop a clear and feasible plan, and report to the National Assembly and the Government for decision," Mr. Long affirmed that this will still ensure control of the national public debt by the Central Government.
The Minister of Justice said that the drafting agency will continue to review and research to ensure smooth implementation, such as determining the amount retained for the budget; the deadline for advances from the Financial Reserve Fund, etc.).
He also hopes that the regulation on this will create a mechanism to help Hanoi have more resources to serve the key and specific tasks proposed by the city, including spending on relocation and support for relocation of central and city agencies, units and facilities according to the planning...
Attract more capital, reduce pressure on the budget
Regarding mobilizing investment resources, Minister Le Thanh Long said there were opinions suggesting considering allowing BT contract payment with land funds; specifying the areas in which BT contracts can be implemented.
The drafting agency explained that before the PPP Law was promulgated, Hanoi had implemented investment projects in the form of BT contracts with payment by land fund and payment by cash (11 projects were completed and 6 projects were being implemented).
The draft Law on the Capital will clearly define the areas and conditions for implementation under the BT form in Hanoi (Illustration photo: Ha Phong).
But when the PPP Law came into effect, the city had to announce the suspension of 82 investment projects under BT contracts. These projects were mainly projects to build roads, waste treatment systems, wastewater treatment and drainage, and renovate rivers and canals.
"If these projects are soon implemented under BT contracts, it will have a huge impact on the socio-economic development of the capital, mobilizing private resources, helping to reduce pressure on public investment capital for projects that have not yet arranged state budget capital," according to the Minister of Justice.
He said that the Capital Transport Planning clearly states that Hanoi plans to build 593km of new roads in the central urban area by 2045, with an estimated reclaimed area of 5,930ha; 368km of roads in satellite cities, with an estimated total reclaimed area of about 3,680ha.
The total length of the city's roads expected to be expanded by 2045 is 217km; the total area of land recovered in the surrounding area is 2,170ha.
"With the set goal, Hanoi needs to have solutions to attract more social capital to participate in investment, reducing pressure on the city's budget," Mr. Long stated.
He affirmed that the drafting agency will study and revise the regulations on BT contracts, clearly define the areas and conditions for implementation in the form of BT, especially the regulations on BT payments using land funds and public assets in an appropriate manner.
Dantri.com.vn
Comment (0)