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The An Phu Intersection in Thu Duc City, HCMC, is undergoing construction at an accelerated pace. |
Over 60 days of vigorous effort to accelerate the progress of public investment disbursement, HCMC has now completed nearly half of the journey. The city is steadfast in its commitment, aiming for a minimum achievement of 80 percent, even if the initial target of 95 percent is not met according to the plan.
In 2022, HCMC achieved a disbursement rate of 76 percent, falling short of the targeted 95 percent. In 2023, the city again set an ambitious disbursement goal of over 95 percent and outlined a specific roadmap from the beginning of the year. However, as the year-end approaches, the progress has not met expectations. As of November 3, the city has only disbursed 38 percent, while the plan aimed for a disbursement rate of over 35 percent by the end of the first six months. The challenges in public investment disbursement and specific solutions have been extensively analyzed and discussed across various forums, especially at the specialized conference of the Standing Committee of the HCMC Party Committee on public investment held on October 20.
The conference highlighted eight factors contributing to the disbursement rate of less than 95 percent for 233 projects. Among these, the most significant factor is challenges related to compensation, support, and resettlement, leading to an unutilized amount exceeding VND12.08 trillion as of now.
Following that is the entanglement in the Anti-Flooding Project in HCMC Regarding Climate Change Factors - Phase 1. Despite being allocated over VND5.7 trillion, disbursement has been hindered due to various procedures falling under the jurisdiction of the Government. The third significant factor is the subjective actions of project investors, resulting in a delayed amount of VND797 billion.
On October 31, at the meeting discussing the socio-economic situation in October and the first ten months of the year, Chairman Phan Van Mai of the HCMC People's Committee urged localities and units to actively participate in the 60-day campaign, working day and night to successfully fulfill the public investment disbursement plan for the year 2023.
On November 3, the Chairman of the HCMC People's Committee issued further directives, placing strong emphasis on correcting and learning from the experiences of groups and individuals involved that had impacted the pace of public investment disbursement. This is regarded as the foundation for assessing the outcomes of the 2023 emulation. The determined and persistent guidance from the leadership of HCMC in public investment has led to notable transformations.
As of early October, HCMC had estimated a disbursement rate of 71 percent. After the directives of the Chairman of the People's Committee of HCMC to review and collaborate with each agency and unit, the Department of Planning and Investment reported the potential for an additional disbursement of over VND5.3 trillion.
On November 16, the Chairman of the People's Committee of HCMC continued to issue directives, assigning specific responsibilities to each department, locality, and project investor. Specific individuals were pointed out, each tied to particular tasks. For instance, the Department of Transport is responsible for finalizing opinions on the design and cost estimate for the construction of road D8 in District 8 with an allocated capital of VND65.8 billion and adjusting the investment decision for the expansion of Hoang Hoa Tham Street with an allocated capital of VND25 billion. The Department of Planning and Investment is tasked with overseeing the Anti-Flooding Project in HCMC Regarding Climate Change Factors - Phase 1. The Department of Finance is mobilizing its workforce to complete the approval of settlements for 48 completed projects.
At the local level, the city has tasked districts with expediting the progress of land clearance and swiftly resolving procedures for projects within their authority. In Hoc Mon District, specific projects include the canal dredging project and the upgrade of the road along the canal, with an allocated capital of VND258 billion, which was disbursed only 6 percent, and the upgrade and repair project for Thoi Tam Thon 5 route, with an allocated capital of VND176 billion, which was disbursed only 1 percent.
In Binh Chanh District, the expansion project of National Highway 50 is facing slow disbursement progress, primarily due to delays in the local authorities handing over the land. Meanwhile, in Tan Binh District, the construction project of the Tran Quoc Hoan - Cong Hoa connecting road, overseen by the Transportation Works Construction Investment Project Management Authority of HCMC (TCIP) with a budget of VND2 trillion, has only achieved a disbursement rate of 17 percent so far.
In 2023, HCMC was entrusted with a total public investment capital of over VND70.5 trillion by the Prime Minister. By early November 2023, the disbursement merely exceeded VND25.8 trillion, reaching 38 percent. The People's Committee of HCMC acknowledges that the public investment disbursement rate in the city remains modest. However, it is crucial to note the substantial total public investment capital allocated to HCMC in 2023, which is double the public investment plan for 2022 and constitutes 10 percent of the overall national public investment capital. When considering the absolute value of disbursed capital, HCMC stands out as one of the regions with the highest disbursement in the country.
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The An Phu Intersection in Thu Duc City, HCMC, is undergoing construction at an accelerated pace. |
In 2023, the TCIP has been entrusted with over VND30 trillion, accounting for nearly 44 percent of the total public investment capital for the entire city. According to Mr. Luong Minh Phuc, Director of the TCIP, as of November 21, it has successfully disbursed over VND14.2 trillion, achieving a disbursement rate of 47 percent. Presently, the TCIP is intensifying efforts and racing against time in the final days of the year to strive for the ambitious disbursement target of 95 percent. Proposed strategies include expediting construction progress in areas with available land, collaborating with localities to complete 20 land clearance projects, and promptly addressing any emerging challenges. Notably, some of these projects have been allocated funding in the billions, such as the An Phu Intersection and the construction and expansion of National Highway 50.
On the other hand, in Binh Chanh District, the local authorities are currently engaged in the compensation and land clearance process for 111 projects. Notable among them are key projects like the expansion of National Highway 50, where 52 out of 725 households have yet to consent to land handover, and the Ring Road No.3 project, which still has 102 cases pending land handover.
Mr. Vo Duc Thanh, Chairman of the People's Committee of Binh Chanh District, mentioned that the district is formulating a monthly disbursement plan to reach 82 percent by the end of November and a determined effort to surpass 95 percent by the close of 2023. In Go Vap District, Chairman Nguyen Tri Dung of the People's Committee of Go Vap District also noted that the district received an allocation of over VND1.8 trillion this year and has committed to achieving a disbursement rate of over 95 percent by year-end. A peculiar aspect of the compensation process is that a significant portion of funds is disbursed after the approval of land price adjustment coefficients. Currently, HCMC has 37 projects with over VND3.4 trillion awaiting approval of land price adjustment coefficients. Therefore, one of the anticipated "boosts" in the compensation process is the authorization by HCMC to the People's Committees of districts and Thu Duc City to determine specific land prices for calculating compensation when the State reclaims land.
Mr. Huynh Thanh Nhan, Director of the HCMC Department of Internal Affairs, reported that on November 7 and 8, the department conducted four training sessions with 541 participants, comprising officials and civil servants responsible for land valuation in various departments, including Natural Resources and Environment, Construction, Justice, Planning and Investment, and the HCMC Tax Department. The participants also included members from the People's Committees of districts and Thu Duc City. This training initiative aims to enhance the effectiveness of the compensation process. Despite the substantial workload ahead until the year-end, HCMC remains resolute in its commitment to achieving a disbursement rate of over 95 percent for public investment capital.
The Department of Planning and Investment is tasked with weekly supervision and review of the results of public investment activities across departments, districts, Thu Duc City, and project investors. Concurrently, it continues to propose solutions to ensure that the disbursement rate achieves the set objectives.
