Recently, VietNamNet published an article “Many businesses ask for help, threaten to sue because the district does not pay for construction debt”, reflecting the situation of a number of projects that have been accepted and handed over for use many years ago, but Chu Se district (Gia Lai) has not paid according to regulations, forcing many contractors to write letters of request for help.

Not funded enough to pay?

According to the investigation of PV.VietNamNet, implementing the direction of the People's Committee of Chu Se district, the Construction Investment Project Management Board (DIPMB) of the district has reported on the settlement of construction investment projects.

Accordingly, from 2017 to April 30, 2024, there are 56 projects in the area with outstanding basic construction debts with a total cost of more than 21.5 billion VND. The reason for the debt is that there has not been enough capital to pay.

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The TDP8 lakeside road project, from Phan Dinh Phung Street to Cach Mang Street, constructed by Truong Phat Loi Construction Company Limited, still owes more than 4 billion VND (accounting for nearly 46% of the final settlement value). Photo: Tran Hoan

Through this report, the Construction Investment Project Management Board requests the People's Committee of Chu Se district and the District Finance and Planning Department to consider and balance capital allocation so that the Project Management Board can pay debts to units that have completed the project.

It is known that among the 56 projects with outstanding basic construction debts, in 2017, there were 2 projects with a total debt of more than 447 million VND; of which, the Phan Dinh Giot Street expansion project (from increased land revenue) still owed more than 194 million VND; Hoang Quoc Viet Street still owed nearly 253 million VND. These two projects were constructed by Thuan Nghia Gia Lai One Member Co., Ltd.

In 2018, there were 2 projects with a total debt of more than 373 million VND, of which the Nguyen Dinh Chieu Street project still owed nearly 70 million VND; the sidewalk project on Quang Trung Street, Chu Se Town (from the district budget surplus and people's contributions) still owed nearly 304 million VND.

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The Ia Glai - Ia Hlop inter-commune road (Chu Se district) was completed in September 2023, but is still owed 722 million VND. Photo: Tran Hoan

Notably, in 2019, there were 36 projects that still owed basic construction with a total amount of more than 8.5 billion VND. The project with the least debt of nearly 11 million VND belonged to the project to build a new Ia H'lop gate, Ia H'lop commune. The project with the most debt was more than 541 million VND, belonging to the inner-city road project, Chu Se town.

There are new projects disbursing nearly 24%

According to the report, the year with the highest outstanding public debt was 2020 with a total of more than 11.1 billion VND belonging to 14 projects. The project with the lowest debt was 85.5 million VND, belonging to the Tang village canal repair project, Kong Htok commune, Chu Se district. The project with the highest debt was more than 4 billion VND (accounting for nearly 46% of the final settlement value) belonging to the TDP8 Lakeside Road project, Phan Dinh Phung section to Cach Mang street, along both banks of the stream branch to the west of Chu Se town. This project is currently being examined and settled by the Finance - Planning Department.

Of the 14 projects with outstanding basic construction debts in 2020, 3 projects still owe from 1.6 billion to more than 4 billion VND. In particular, the Chu Se Urban Lighting Project, which was only allocated and disbursed 1.1 billion VND, still owes 3.65 billion VND, with a debt ratio of 76.6%.

According to the Chu Se District Construction Investment Project Management Board, this project has not been handed over due to insufficient funding to complete the project.

Next, in 2023, there are 2 outstanding projects with a total amount of more than 1 billion VND from capital contributed by the people. Of which, the project to expand the inter-commune road from Ia Glai to Ia Hlop commune, which has been handed over, still owes nearly 671 million VND; the project to build a road from Dun commune to Al Ba commune (from Pan village to the stream) still owes 353 million VND (expected to be handed over in May). The reason for this outstanding debt is explained by the Chu Se District Construction Investment Project Management Board as not having allocated capital contributed by the people.

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According to the Chu Se District Construction Investment Project Management Board, from 2017 to April 30, 2024, there are still 56 projects with outstanding basic construction debts with a total cost of more than 21.5 billion VND. Photo: Tran Hoan

In addition to the outstanding construction projects, in Chu Se district, there are 66 projects that have not yet been finalized for completion, including 5 projects completed in 2018; 7 projects completed in 2019; 23 projects completed in 2020; 21 projects completed in 2021 and 10 projects completed from 2022 to 2024.