Central region promotes disbursement of public investment capital

The Central Key Economic Zone consists of five provinces and cities stretching from Thua Thien - Hue to Binh Dinh. According to data from the Ministry of Planning and Investment, it is estimated that by September 30, localities in the region had disbursed VND25,746.9 billion in public investment capital (reaching 46.21% of the plan assigned by the Prime Minister), lower than the average disbursement rate of the whole country (47.29%).

"Bottleneck" of land clearance

Specifically, Thua Thien - Hue disbursed 4,068.4/6,957.9 billion VND assigned (reaching 58.47%); Da Nang disbursed 3,520/7,291.9 billion VND (reaching 48.27%); Binh Dinh disbursed 5,456.1/7,865.7 billion VND (reaching 69.37%). Meanwhile, Quang Nam disbursed 2,672.9/6,520.6 billion VND (reaching 40.99%); Quang Ngai disbursed 2,305.3/6,902.9 billion VND (reaching 33.40%). There are currently many reasons why the disbursement of public investment capital in the region is not as expected. In particular, the first "bottleneck" is the difficulties and obstacles in site clearance. Specifically, to date, determining the origin of land and determining land prices is still difficult due to the situation of building houses on agricultural land; using land for the wrong purpose or buying and selling with handwritten documents; encroaching on land in public works corridors... In addition, the newly issued Land Law 2024 has forced many projects to recalculate site clearance costs according to the new provisions of the law.

Land clearance is an important "bottleneck" in disbursing public investment capital.

In Quang Nam, the locality has established 5 working groups to inspect, urge, remove difficulties and obstacles, promote disbursement of public investment capital and the socio-economic recovery and development program in 2024. However, the disbursement of public investment capital in the locality is still low, due to difficulties in site clearance. The main reasons include difficulties in confirming land origin, compensation prices in some areas are not close to reality, lack of human resources, and low operating costs. The nature of the work is also difficult and complicated.

Similarly, in Quang Ngai, according to Mr. Nguyen Hoang Giang, Chairman of the Provincial People's Committee, the disbursement of public investment capital is slow due to difficulties in site clearance. Currently, the locality has 30 projects stuck in site clearance because the land valuation work has not been completed; the implementation of the 2024 Land Law is still confusing. Many projects have not identified the origin of the land, causing people to refuse to receive compensation. People do not hand over land, hindering construction. In addition, some projects cannot be implemented temporarily due to having to overcome the conclusions of inspection and examination agencies.

Promoting disbursement of public investment capital

In addition to the issue of site clearance, the slow disbursement of public investment capital in the key economic region of the Central region is also due to many other reasons. In particular, the capital arrangement registration of some investors is not consistent with the actual capacity and progress of implementation; the capacity of some design consultants is not commensurate with the bidding documents, not meeting the actual requirements of the project. The capacity of some investors and project management boards is still limited, and they are still passive in proposing specific solutions. The process and procedures for implementing ODA projects are quite complicated, taking longer than a normal public investment project.

In addition, there is a shortage of construction materials due to time-consuming investment and mining bidding procedures. Another difficulty specific to the Central region is that the last months of the year often have a lot of rain and storms, with a high risk of landslides, which significantly affects the construction work on the ground of many projects. These factors also affect the progress of public investment disbursement in localities in the region.

To promote the disbursement of public investment capital, some localities in the region have proposed amending regulations and mechanisms to facilitate the disbursement process. There should be regulations on the time for arranging capital to implement projects, separating land clearance projects, decentralizing the authority to decide on extending the time for arranging capital, implementation time and disbursement of annual local budget capital. At the same time, it is necessary to unify land classification, land use principles, and resolve the difference between compensation prices according to the State's regulatory framework and market prices; shorten the licensing process and mining of common construction materials.

In particular, according to Mr. Phan Quy Phuong, Vice Chairman of the People's Committee of Thua Thien - Hue province, special attention should be paid to the land price list to remove bottlenecks in site clearance and speed up project progress.

Regarding the central budget capital investment plan for 2024, Quang Nam and Quang Ngai provinces requested the Ministry of Planning and Investment to synthesize and submit to competent authorities for consideration and adjustment to reduce the central budget capital investment plan for 2024 assigned by the Prime Minister to localities. Quang Nam also requested the Ministry of Transport to pay attention to allocating capital to invest in projects in the area such as: National Highway 1 through the province; National Highway 14D; National Highway 14G; National Highway 14B; National Highway 40B; National Highway 14H.

Meanwhile, Da Nang proposed to add the cost of performing the task of preparing detailed construction planning at a scale of 1/500 to the Law on Public Investment (amended) and specifically stipulate that this cost is a component in the capital plan for preparing project investment, arranged from public investment capital. This locality also proposed to consider adding the project to upgrade and expand National Highway 14G to the list of national highway and expressway projects passing through localities, assigning the provincial People's Committee as the managing agency and using investment capital from the local budget.

Source: https://thoibaonganhang.vn/mien-trung-thuc-day-giai-ngan-von-dau-tu-cong-156914.html