HCMC to sanction projects running behind schedule

The People’s Committee of Ho Chi Minh City recently decided to cut investment capital on 86 projects funded by the State, which were running behind schedule by end of last year, and had disbursement ratio of less than 30 percent.

In addition, the committee also criticized 53 departments, committees, districts, and investors whose projects had lower disbursement ratio than planned. The City will now introduce stricter sanctions on governing units and investors of these projects.

Moreover, by the end of 2012, there were 34 projects with disbursement ratio below 50 percent. The City will consider giving further extension to these projects, and any project in future not being carried out will be terminated.

Earlier, the Department of Natural Resources and Environment had suggested terminating a housing project, whose site clearance compensation was below 50 percent, right at the beginning of the year. Other projects will only receive further extension till the end of this year.

By T.Mai – Translated by Thuy Doan

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