Disbursement of public investment capital: Drastically from investors

– The disbursement of public investment capital is identified as a key task in the direction and administration of socio-economic development in 2021, so in early beginning of this year, investors are assigned to manage capital sources having specific action plans with drastic measures in order to promote the capital and create a determining factor for the economic growth.

According to the statistics of the Province’s State Treasury, the total public investment capital allocated in 2021 in the province (excluding the national target program capital) is 2,911.8 billion VND investing in 600 different categories projects. By the end of April 2021, the value of implementation of public investment capital sources will be reached approximately 800 billion VND, equivalent to 27.4% of the plan; completing the investment disbursement of 674.5 billion VND, equivalent to 23.1% of the plan (the disbursement rate reached 21% in comparison with the same period in 2020).

Contractors constructing traffic road works of Dong Banh Industrial Park, Chi Lang ward

To achieve this result, functional departments and branches such as Department of Planning and Investment and the provincial Finance and State Treasury have advised the Provincial People’s Committee to issue many documents urging investors to promote the disbursement of construction investment capital from the beginning of the year.

“In 2021, the operating mechanism for construction investment, disbursement of capital sources of the Provincial People’s Committee is stricter. Specifically, the disbursement time for each capital source and each project under the 2021 plan has changed comparing to the previous year. For example, if projects are started before June 30, 2021, investors will have to disburse more than 40% of the capital plan by the end of September 2021. The strict management mechanism of the Provincial People’s Committee forced the Investors to be more drastic about the project implementation right from the beginning of the year” said Ms. Hua Thi Hang, Deputy Director of the Department of Planning and Investment.

The Provincial Construction Investment Management Board in 2021 is assigned to manage the public investment capital of 1,435 billion VND including the central budget capital source 821 billion VND; the local budget source of 294 billion Dong; ODA of 288 billion VND and the re-borrowed capital of 32 billion VND. Capital was allocated for key projects such as: The project of Highway 4B improvement and improvement with VND 275 billion; the project for comprehensive development of Northeastern provinces with VND 384 billion; supporting projects with socio-economic spillovers for the highways of Chi Lang – Huu Nghi section with 280 billion VND … To organize disbursement and ensure the effective promotion of investment capital, administering panels for capital disbursement for each sector and department were established in order to directly supervise and instruct specific projects.

“To speed up the disbursement progress, the panels elaborate the disbursement roadmap and plan for each capital source and specifically for each project and project. close to reality. At the same time, assign clear responsibilities to members of the board of directors and leaders of functional departments if disbursement is delayed for the projects assigned to management. In addition, the committee focuses on solving disbursement difficulties such as recovery, compensation, resettlement and site clearance”- said Mr. Trinh Tuan Dong, Director of the Provincial Construction Investment Management Board.

 

Thanks to the drastic direction, by the end of April 2021, the committee successfully disbursed 364.8 billion dong equivalent to 25.4% of the set-out plan of which 310 billion VND was disbursed for new and transition projects making up 23% of the assigned capital plan.

For the People’s Committees of districts and city, from the beginning of the year, many localities have developed plans to synchronously implement solutions to promote the disbursement of public investment capital as planned. Taking Dinh Lap district as an example, in 2021, the district was assigned a capital plan of more than 90 billion VND to implement 5 transition projects and 10 new construction projects. In order to effectively implement the construction investment and disbursement of capital sources, from the end of 2020, the District People’s Committee had assigned the estimates to its units, at the same time, issued the operation mechanism for the district investment and construction and land clearance in 2021. Every month the District People’s Committee organizes a meeting on construction investment to listen to the units’ the progress reports on implementation, update the implementation of on-going projects, and discuss solutions for arising problems.

Therefore, up to now, the results of capital sources are assessed well. New and transitional projects have been disbursed to reach 31% of the capital plan.

According to statistics, by the end of April 2021, the disbursement results of districts and cities reached an average of 30% of the assigned capital plan (in the same period in 2020, less than 20% of the assigned capital plan). Some units disbursed quite well such as Bac Son reaching 42% of the plan; Van Lang reached 40% of the plan; Trang Dinh achieving 36% of the plan; Huu Lung reaching 50% of the plan …

The results of the disbursement of public investment capital in the first 4 months of the year are very remarkable contributing to promoting growth and creating jobs for employees. However, the task from now to the end of the year for construction investment is very challenging, especially the disbursement of the remaining capital. To complete the task well, it is required that investors are proactive in directing more closely and drastically projects. If so, the disbursement plan of public investment capital in 2021 will be able to reach over 95%.