HCMC aims to achieve disbursement rate of public investment at above 90 percent

SGGP
According to Ms. Le Thi Huynh Mai, Director of the Department of Planning and Investment, Ho Chi Minh City plans to achieve a disbursement rate of public investment of above 90 percent this year.
HCMC aims to achieve disbursement rate of public investment at above 90 percent  ảnh 1 Ms. Le Thi Huynh Mai, Director of the Department of Planning and Investment of HCMC. (Photo: SGGP)
She said that the disbursement of public investment capital last year is considered a positive bright spot, much higher than the same period in previous years. The city's total public investment capital in 2020 is 1.6 times higher than the previous year's plan. Disbursement results in 2020 are 1.4 times higher in absolute value compared to the same period in 2019. If excluding the Government’s on-lending ODA capital, the disbursement rate of public investment in 2020 of the city had achieved the planned target, from 90 percent upwards. According to the confirmation of the State Treasury of Ho Chi Minh City, in 2020, the capital disbursement was more than VND35.11 trillion, and the disbursement rate reached 83.6 percent of the total capital plan of VND41.98 trillion assigned by the city. If excluding the Government's on-lending ODA capital, the disbursement rate was 92 percent of the city's total capital plan.

The above results were achieved thanks to the activeness and great efforts of the whole city. The People's Committee of HCMC regularly met with specialized departments and investors to review projects and propose tasks and solutions to remove difficulties and obstacles to speed up the implementation progress and disbursement of capital; the implementation of compensation, support, and resettlement for projects with land acquisition, piloting specific mechanisms and processes to shorten the time for compensation, support, resettlement, and site handover; study and review the provisions of the Law on Public Investment to send documents to the Ministry of Planning and Investment to guide and remove difficulties and obstacles.

Besides, the People's Committee of HCMC also issued an Action Program on promoting the disbursement rate of public investment capital in the remaining months of 2020 to ensure the effective implementation of Resolution No.84/NQ-CP dated on May 29, 2020, of the Government on tasks and solutions to continue to remove difficulties for production and business activities, promote disbursement of public investment capital and ensure social order and safety in the context of the Covid-19 pandemic for the executive management of the city's public investment plan.

As for the disbursement progress of HCMC this year, Ms. Le Thi Huynh Mai informed that HCMC is drastically implementing many solutions to overcome the consequences of the Covid-19 pandemic to stabilize the socio-economic situation, regain economic growth momentum, and stabilize people's lives. Therefore, accelerating the disbursement of public investment capital is considered as one of the key solutions that the city must deploy. The city has determined that promoting the implementation of the public investment plan is a key political task in 2021 of all levels of Party committees and authorities in the city, to boost economic growth, implement the highest socio-economic development targets in 2021 in the context that the Covid-19 pandemic is still developing complicatedly. With the current determination of all sectors and levels, the disbursement of projects will be implemented effectively, and the disbursement rate of the city's total investment capital plan by the end of the year is expected to reach 90 percent upwards.

The complicated situation of the Covid-19 pandemic has directly created difficulties affecting the disbursement progress of projects, especially for ODA projects because foreign experts, equipment, and machinery that serve projects cannot be imported into Vietnam; the project implementation progress is delayed because workers implement social distancing; difficulties lead to many disputes related to contracts, affecting the construction, acceptance, and disbursement.

HCMC aims to achieve disbursement rate of public investment at above 90 percent  ảnh 2 The Ben Thanh - Suoi Tien Metro Line project uses ODA capital. (Photo: SGGP)
To overcome and remove the above difficulties, besides the solutions that were implemented effectively in the past time, the city needs to speed up the implementation of compensation, site clearance, and resettlement for projects with the land acquisition; organize effectively the implementation of the Government's Resolution No.27/NQ-CP dated March 9, 2020, on allowing the pilot application of specific mechanisms and processes to shorten the time for compensation, support, resettlement, and handover of the site for projects with land acquisition in the city; at the same time, closely monitor the disbursement of the public investment capital plan of each project, propose capital reduction for projects with low disbursement rate to transfer to projects with high disbursement rate and likely to be completed within the year or projects with completed volume, avoid adjusting capital investment plan at the end of the year, affecting the disbursement progress of investment capital in 2021.

However, in the process of advising on the development of the medium-term public investment plan for the 2021-2025 period and the public investment plan in 2021, the Department of Planning and Investment always proposes to prioritize capital allocation on key projects with spillover effect and construction sites. Currently, the department has also submitted to the municipal People's Committee to issue an Action Program on promoting disbursement of public investment capital in 2021 to concretize tasks and solutions for agencies and units in the city to accelerate the disbursement of public investment capital.

HCMC will drastically carry out solutions to accelerate the disbursement of public investment capital plans to stimulate production, business, and consumption, create jobs, and ensure social security, contributing to the construction and completion of the necessary socio-economic infrastructure to improve competitiveness, support production and business activities of people and enterprises, and attract other sources of social investment capital. Of which, the Department of Planning and Investment assessed that the most important factor is the smooth and timely coordination with the responsibility of the relevant agencies in the implementation of the projects, especially, the coordination in implementing investment procedures and solving problems relating to the construction site. At the same time, local authorities also need to actively propagate, promptly inform, and resolve people's problems, thereby creating the consensus of people on the implementation of site clearance for the general development of the city.

By Han Ni – Translated by Gia Bao

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