Chairman of the Ho Chi Minh City People's Committee Phan Van Mai speaks at a meeting, discussing ways to hasten the disbursement of public investment. (Photo: VNA) Phan Van Mai, Chairman of the municipal People’s Committee, saidthe city would need 672 trillion VND of public investment for the 2020-2025period but only 142 trillion VND was approved, or 21 % of what isneeded, which is too low.
Mai said the city would also speed up disbursement of publicinvestment, especially for major public projects.
It has established three working groups: one in charge ofsite clearance, one in charge of reviewing public projects with largeinvestment but slow disbursement, and one in charge of reviewing challengesrelated to projects using ODA capital.
As of the end of July, the city’s total public investmentdisbursement reached more than 8.4 trillion VND, accounting for only 26% of theyear’s target (32 trillion VND). About 100 public projects have not hadfunds disbursed for them, according to a report from the cityadministration.
For projects using official development assistance (ODA),disbursement reached only 8% in the first seven months, the report said.
The city’s total public investment disbursement last yearaccounted for only 61.3% of the year’s target, it added.
Public investment disbursement remains too slow, causing majorpublic projects to be delayed for years, according to Mai, who attributed thetardiness to complicated administrative procedures, among other problems.
He said it was imperative to speed up the progress of majorprojects such as metro routes and Ring Road No. 3, and invest more inroads connecting sea ports and airports.
The city aims for 95% of public investment to bedisbursed this year, according to the official.
In addition, the city would seek private funds for public facilitiessuch as schools, hospitals and cultural and sports centres through theequitisation of state-owned businesses.
It has proposed the central government allow itto attract private investment for such public projects.
The country’s public disbursement rate reached 35.5% of the year’starget plan in the first eight months, of which, domestic capital reached 41%and foreign capital 14%, according to a report of the Ministry of Finance.
Provinces with a high disbursement rate included Tien Giang (64%),Thai Binh (58%), Phu Tho (57%), Long An (55%) while other localities have lowdisbursement rate of less than 35%.
At a recent meeting to speed up public investment disbursementrates, Prime Minister Pham Minh Chinh ordered localities to remove anyobstacles.
Nguyen Chi Dung, Minister of Planning and Investment, said thehead of ministries and local agencies in charge of public projects wouldbe responsible for any issues related to the projects’ disbursement rate./.
VNA
