Procedures hinders underfunding metro project from using available funds

HCMC has asked the Government to advance VND1 trillion from the state budget for underfinanced Ben Thanh-Suoi Tien metro project and long waited for approval. Meantime the project itself now has an available capital of the same amount but complicated administrative procedures have prevented it from using the funds.

A view of the meeting (Photo: SGGP)

A view of the meeting (Photo: SGGP)

That was said by director of State Treasury in HCMC Vu Hoai Nam at a meeting yesterday afternoon when a City National Assembly delegation worked with the People’s Committee of the city on socioeconomic conditions in the first half of 2018.
According to Mr. Nam, the VND1 trillion (US$43 million) leftover is meant for equipment but construction has not been done so that source has not been used. Still the law now does not permit use of funds of this item for another item.
The city has arranged VND1.5 trillion ($64.23 million) for the second metro line project but five districts in the project's area have not completed site clearance.
Disbursement of VND2.5 trillion ($107.24 million) from city budget for Children Hospital in Binh Chanh district and Oncology Hospital in District 9 has been stagnant becuase of complex procedures despite available funds, he reported.
Talking about metro line projects, deputy head of HCMC Urban Railway Management Board Hoang Nhu Cuong said that under construction metro line No.1 now awaits for the National Assembly and the Government to permit adjustment of investment capital, so construction progress has slowed down.
Meantime, the second metro line has not been constructed as the city must ask the Government and National Assembly to increase investment funds.
He proposed the HCMC National Assembly delegation to propose the National Assembly to soon have a policy for the first metro line to continue construction.
Currently, the project's progress has slowed down and the number of workers on the construction site has been reducing. So Mr. Cuong feared that it will not go on schedule to complete by 2020.

By MANH HOA – Translated by Hai Mien

Other news