HCMC speeds up disbursement of public investment capital

Many localities and competent agencies in Ho Chi Minh City are making great efforts to achieve the disbursement rate as per plan.
Underpass project Nguyen Van Linh - Nguyen Huu Tho in HCMC’s District 7

Underpass project Nguyen Van Linh - Nguyen Huu Tho in HCMC’s District 7

Many localities and agencies in Ho Chi Minh City are making great efforts to achieve the disbursement rate as per plan because the southern metropolis's last year disbursement of public investment capital and the disbursement progress in the first months of 2023 was unsatisfactory.

HCMC’s District 11 was assigned to disburse more than VND122 billion but in the first three months of 2023, the People's Committee of District 11 spent over VND47 billion achieving 39 percent of the plan; however, the district is one of the localities with the best disbursement rate in the city.

Mr. Nguyen Tran Binh, acting Chairman of District 11 People's Committee, said that the district expended an amount of money mainly on the Dam Sen Ring Road project, which is being implemented to ensure progress.

Currently, the People's Committee of District 11 has been focusing on compensation, site clearance and relocation of affected households, which is expected to be completed in May so that construction can begin at the end of the second quarter of 2023.

According to the acting Chairman of the District 11 People's Committee, the Dam Sen Ring Road project has affected about 180 households, and most of the households have so far received compensation. The calculation of compensation and resettlement policy is based on different methods and the local administration has offered various options; subsequently, residents agreed to move. Mr. Binh disclosed that the district authority introduced apartment locations in Phu Tho apartment building or some other resettlement housing funds of Ho Chi Minh City for people to decide where to settle.

In the first quarter of 2023, District 6 has disbursed more than VND38 billion, reaching 23.36 percent of the plan. The district is striving to reach over 50 percent by June and over 95 percent of the plan for the whole year.

Prior, the district also had well done in disbursement. For instance, in 2021, its disbursement rate reached 97.84 percent while in 2022, its disbursement proportion was 99.6 percent. Chairman of the People's Committee of District 6 Le Thi Thanh Thao said that the district gives top priority to projects without compensation. For example, when determining that the need for schools and classes is urgent, the district has focused on implementing educational projects; thus, the district has so far had 307 classrooms over ten thousand dwellers, higher than the city's general target of 300 classrooms/ thousand people.

Similarly, Go Vap District was allocated more than VND88 billion in the first phase of 2023. By the end of March 31, the district disbursed nearly VND24 billion reaching 27 percent of the plan. The district has constructed and renovated offices of public agencies and units as well as drainage systems of roads and alleys in the district.

Sharing the results of the disbursement of public investment capital in the first phase of 2023, Chairman of Go Vap District People's Committee Nguyen Tri Dung said that from the beginning of the year, the District People's Committee has directed project investors in the district to develop detailed plans for capital disbursement of each project.

At the same time, the district has paid attention to speeding up the payment and settlement of compensation projects and many other projects in the district. At the special meeting on April 18, Go Vap District was allocated more than VND 1,754 billion for public investment in the second phase of 2023.

Of the amount, VND 1,750 billion was spent on site clearance, expansion and upgrade of Duong Quang Ham Street which is an important and key infrastructure project according to the Resolution of the Party Congress of Go Vap District for the 2020-2025 term. The project helps solve traffic congestion, meeting the increasing travel needs of people as well as contributing to the economic development of the district in the coming time.

With a total allocated capital of more than VND1,842 billion for the two phases, quite high compared to previous years, Go Vap District has formulated a plan to promote public investment capital. It is worth noting that the district proposed to the district Fatherland Front Committee and mass organizations to jointly supervise the implementation.

According to the HCMC Transportation Works Construction Investment Project Management Authority under the People's Committee of Ho Chi Minh City, the capital of VND23,000 billion for the main project of the Ring Road 3 in the city must be disbursed this year.

Director of the HCMC Transportation Works Construction Investment Project Management Authority Luong Minh Phuc said that the board has built a disbursement schedule for each month and each quarter. It is expected that by the end of the second quarter of 2023, the disbursement rate will reach 46 percent, the end of the third quarter of 2023 will reach 72 percent and complete 100 percent by the end of this year.

Recently, the disbursement of public investment capital in Ho Chi Minh City is generally slow. In 2022, the disbursement rate will reach 71.3 percent. But in the first three months of 2023, the disbursement rate only reached 4 percent whereas city leaders set a target of 95 percent or more disbursement.

In 2022, in addition to the objective reasons that cause the price of materials to escalate, affecting the construction plan of the contractor, Ho Chi Minh City has determined that governing bodies and investors of public investment projects register small capital allocations to avoid low disbursement.

Since then, many projects have dragged on, but investors have not proposed to allocate enough capital to complete the project within the year. The disbursement planning of these units is also not close.

At the briefing, the units regularly reported and confirmed that they would achieve the goal of disbursing public investment capital of 95 percent, but by the end of the year, the disbursement rate was much lower than registered. In addition, the capital has been arranged but the dossiers and procedures are not completed, and have to be supplemented and edited many times, which takes time. The management, administration and implementation of the 2022 public investment plan have not been effective.

In the first months of 2023, Ho Chi Minh City continuously directed and urged to accelerate the disbursement of public investment capital. However, by the end of the first quarter of 2023, of 61 units, 25 of them have not done their tasks well whose leaders received warnings.

Other news