Ho Chi Minh City asks to reduce more than 1,000 billion VND of public investment capital in 2024 in sluggish projects
The adjustment to reduce 1,112 billion VND of public investment capital in 2024 from sluggish projects will be allocated by the City for transitional and newly started projects.
This morning, May 19, the 10th term Ho Chi Minh City People's Council opened its 15th session (special session). At the session, the Ho Chi Minh City People's Committee submitted a report on adjusting and supplementing the 2024 public investment plan using local budget capital.
Accordingly, in 2024, Ho Chi Minh City will be assigned a total local budget public investment capital of VND 75,577 billion.
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| To use public investment capital effectively and promote disbursement of public investment capital, the Ho Chi Minh City People's Committee submitted to the City People's Council for consideration and adjustment to increase and decrease by VND1,112 billion, respectively. Photo: Thanh Nhan |
At the meeting in March 2024, the Department of Planning and Investment advised the City People's Committee to submit to the City People's Council for approval the adjustment and supplementation of the public investment plan between agencies and units with the total adjusted capital increase and decrease of VND 3,702 billion, respectively, ensuring no change in the City's public investment capital level assigned by the Prime Minister.
On that basis, the City has adjusted the 2024 public investment plan within sectors, fields, and programs of investors using local budget capital.
However, in order to use public investment capital effectively, promote the disbursement of the City's public investment capital and accelerate the implementation of projects supplemented with medium-term capital for the period 2021 - 2025, the City People's Committee continues to submit to the City People's Council for consideration, adjustment and increase or decrease by VND 1,112 billion, respectively.
Specifically, the City requests an increase of VND 1,112 billion to allocate capital to implement transitional projects, newly started projects that have been decided on investment by competent authorities, decided to adjust investment projects; investment preparation projects that have been decided on investment policies; investment preparation tasks and projects submitted to the City People's Council for investment policy decisions, and investment policy decision adjustments at the same session.
Of which, the adjustment to increase counterpart capital for projects using ODA capital and preferential loans from foreign donors is 2.9 billion VND; the adjustment to increase the City's targeted additional budget capital for districts and Thu Duc City is more than 317 billion VND.
The majority of the remaining amount, more than VND 778 billion, was proposed by the City to increase capital for projects using concentrated City budget capital. Some projects were proposed to have large capital additions such as compensation for site clearance of the National Cultural and Historical Park (VND 337 billion), compensation for site clearance, and resettlement support for the Hanoi Highway expansion project...
However, in order to not change the level of public investment capital allocated for 2024, the City proposed to reduce the corresponding capital amount, of which the majority (VND 1,100 billion) is to adjust the capital reduction of projects using concentrated City budget capital.
Some of the projects with the largest capital reduction include compensation for site clearance and resettlement for the Bau Trau canal renovation project (VND424 billion); investment projects from CNC9 Venture Capital Fund (VND330 billion)...
Along with adjusting the 2024 public investment plan, the City People's Committee also submitted a document to adjust and supplement the medium-term public investment plan for the 2021-2025 period using local budget capital.
Accordingly, in March 2024, the City People's Committee reported to the City People's Council that the allocated capital could be adjusted down from projects that had been implemented but not fully utilized due to price reduction through bidding, reduction in compensation costs, site clearance, not using contingency costs... about 16,056 billion VND.
Of which, the reduction of medium-term capital from the Ring Road 3 construction investment project is 6,129 billion VND and the transitional projects using the City budget capital is 9,927 billion VND.
However, currently, a number of projects with 2024 capital plans are being reviewed and disbursement data is being verified (according to the acceptance and settlement values of competent authorities) before adjusting the medium-term capital reduction for all projects according to the reported plan, to ensure project completion and avoid causing outstanding construction debt.
To limit the adjustment of the medium-term public investment plan for the period 2021 - 2025 for the same project multiple times (due to the failure to determine the acceptance and final settlement value of the project), the City People's Committee proposed to reduce the medium-term capital of projects that have had decisions approving the settlement and acceptance of completed volume and no longer need to use capital with a total adjusted capital reduction of VND 2,441 billion.
The proposed capital adjustment reduction, the City People's Committee proposed to balance and arrange for eligible projects to supplement the medium-term public investment plan for the period 2021 - 2025.
For example, transitional projects that have been approved by competent authorities for project completion need additional capital to finalize the project. Transitional projects that are being implemented, without increasing the total investment and without having to carry out procedures to adjust the project investment policy, need additional capital of VND 1,750 billion.
These projects need to prioritize capital allocation, ensure no outstanding debt and be consistent with the capital allocation priority order.
Source: https://baodautu.vn/tphcm-xin-giam-hon-1000-ty-dong-von-dau-tu-cong-2024-tai-cac-du-an-i-ach-d215513.html
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