Land prices are the root of the problem
In 2024, Quang Ngai's total public investment plan is more than 6,900 billion VND. Of which, local budget capital is more than 5,045 billion VND, the rest is central budget capital.
It is estimated that by October 31, 2024, Quang Ngai will disburse about VND 2,303 billion, equal to 33.4% of the assigned capital plan. Of which, the local budget will disburse about VND 1,810 billion (35.9%), and the central budget will disburse about VND 492 billion (26.5%).
Currently, the disbursement of public investment capital in Quang Ngai is much lower than the national average. The main reason is said to be the problem in site clearance due to the failure to determine land prices as a basis for approving compensation and land recovery plans.
This has greatly affected the construction progress of many large projects in the area, including key projects, typically the road project connecting Thach Bich bridge to Tinh Phong.
The project has a total investment of nearly 700 billion VND, invested by the Quang Ngai Provincial Traffic Construction Investment Management Board with a length of more than 6km, passing through Tinh An Tay commune (Quang Ngai city) and Tinh Phong commune (Son Tinh district).
This is the project chosen to display the welcome sign for the 21st Quang Ngai Provincial Party Congress, so it must be completed and put into use before September 2025. In particular, site clearance work must be completed by the end of 2024 at the latest.
Although construction began in 2019, according to the investor, site clearance has only reached about 51-52% due to land price issues.
Similarly, the Tra Khuc downstream dam project with a total investment of 1,500 billion VND has not yet set a “finish date”, one of the reasons being land clearance problems. The investor continues to request an extension to complete the project until 2025.
According to Mr. Ngo Van Dung, Director of the Quang Ngai Province Traffic Construction Investment Management Board, to disburse capital, there must be a site for construction. Meanwhile, to have a site, there must be a compensation plan approved by the competent authority. And to have a compensation plan, there must be a land price.
However, the transitional issues of legal regulations on land, compensation, etc. lead to confusion in determining specific land prices, resulting in a lack of construction sites.
“From now until the end of the year, if land prices and compensation plans are not approved, the story of public investment capital disbursement will continue to be slow,” Mr. Dung shared.
What is the solution?
Acting Director of the Department of Natural Resources and Environment of Quang Ngai, Nguyen Duc Trung, said that regarding the work of determining specific land prices to calculate compensation when the State reclaims land, the Provincial People's Committee has authorized the District People's Committee to decide.
At the same time, according to regulations, the decision on specific land prices to calculate compensation when the State reclaims land for socio-economic development is under the authority of the Chairman of the District People's Committee.
The District Department of Natural Resources and Environment is the advisory body to the Chairman of the People's Committee at the same level to organize the determination of specific land prices.
The work of determining and deciding on specific land prices to calculate compensation when the State acquires land has been specifically regulated by the 2024 Land Law and is applied uniformly throughout the country.
Regarding solutions, according to Mr. Trung, the district-level People's Committee needs to focus on directing relevant departments and advisory units to urgently carry out the work of determining and deciding on specific land prices to calculate compensation when the State reclaims land, ensuring progress and speeding up compensation and site clearance work at the district level.
The District People's Committee shall direct the District Land Fund Development Center or the District Land Fund Development and Investment Project Management Board to review and complete its functions and tasks to meet the conditions for land price determination consultancy activities as prescribed. To meet the assigned tasks for public service units to determine specific land prices in cases where there are no participating contractors as prescribed in Decree No. 71/2024/ND-CP dated June 27, 2024 of the Government.
Also related to the disbursement of public investment capital, Director of the Department of Planning and Investment of Quang Ngai Nguyen Van Trong said that the province has established a Steering Committee for the implementation of key projects in Quang Ngai province and 3 committees to promote the disbursement of public investment capital headed by 3 Vice Chairmen of the Provincial People's Committee to remove difficulties.
“Regarding the issue of slow disbursement of public investment capital from the Central Government, the province has sent a document to the Central Government requesting a reduction in capital. If the reduction is approved, the Central Government will supplement it in 2025. If not, the province will ask the Central Government to extend it beyond 2025,” said Mr. Trong.
Source: https://kinhtedothi.vn/quang-ngai-giai-ngan-von-dau-tu-cong-duoi-muc-trung-binh-vi-gia-dat.html
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