Why has Can Tho not issued 2,000 billion VND in bonds to implement transport projects?

On July 29, at the regular press and media meeting for the second quarter of 2024, the People's Committee and the Department of Finance of Can Tho City informed about the issuance of bonds, mobilizing capital to build many key projects of the city, including many important traffic projects.

Construction site of the Western Ring Road Project in Can Tho city with a total initial investment of over 3,737 billion VND.

Mr. Nguyen Thanh Si, Deputy Director of Can Tho Department of Finance, said that the initial plan for issuing local government bonds will be implemented in July 2024. However, according to the process, the city must develop a project and send it to the Ministry of Finance for comments, so the time has changed.

Based on the opinion of the Ministry of Finance, on July 26, 2024, the People's Committee of Can Tho City issued a conclusion directing the Department of Planning and Investment to coordinate with the Department of Finance and investors of projects using local government bond capital (Department of Transport, City Project Management Board) to agree on a plan to advise, propose and complete the project.

Mr. Si said that the project plans to issue VND2,000 billion in local government bonds in 2024 and 2025, of which VND1,000 billion will be issued each year.

"We are trying to complete it as soon as possible so that we can organize the implementation," said Mr. Si.

Further clarifying this issue, Mr. Duong Tan Hien, Vice Chairman of Can Tho City People's Committee, said that the Ministry of Finance has opinions that must be specific, including the following contents: the capital issued by local government bonds must clearly state which projects are allocated to. In addition, the use of capital as well as the commitment to disburse must comply with regulations in 2024 and in 2025 must also be implemented similarly.

Mr. Hien said that the city has assigned the Department of Planning and Investment, the Department of Finance and the investor to calculate the loan date, time and which projects will use the capital to ensure efficiency.

At the end of 2023, the People's Council of Can Tho City approved the policy of issuing local government bonds. The maximum volume of bonds issued is expected to be 2,000 billion VND, the first batch in July 2024, the second batch in the first quarter of 2025.

The issuance of guaranteed bonds does not exceed the maximum borrowing limit according to Resolution No. 45/2022/QH15 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Can Tho and within the annual local budget deficit approved by the National Assembly.

The purpose of issuing bonds is to ensure the balance of development investment capital to implement key projects, such as: Western Ring Road Project, provincial roads 917, 918, new resettlement areas...

Source: https://www.baogiaothong.vn/vi-sao-can-tho-chua-phat-hanh-2000-ty-dong-trai-phieu-thuc-hien-cac-du-an-giao-thong-192240729180113762.htm