Allocation of capital for compensation for key projects

In the afternoon of April 6, Mr. Vo Van Minh, Chairman of Binh Duong provincial People's Committee chaired an online conference to review the public investment in 2021 and to deploy the direction of public investment tasks in 2022. Attending at the connection point of the provincial People's Committee was Mr. Mai Hung Dung, Standing member of provincial Party Committee, Standing Deputy Chairman of provincial People's Committee and leaders of departments, agencies and sectors.

The disbursement efforts

As reported, right from the beginning of 2021, despite facing many difficulties due to the complicated development of the COVID-19 epidemic, the province has issued many drastic documents directing and urging agencies and units to perform tasks and solve problems to accelerate disbursement of public investment capital, striving to achieve the highest results. The total disbursement value of the public investment plan in 2021 including the extended 2020 plan to January 31, 2022 is more than VND 8,333 billion, reaching 61.5% of the plan and 78.75% compared to the same term of 2020.

Mr. Vo Van Minh (left, top row), Chairman of the provincial People's Committee chairs the Conference to review the public investment in 2021 and to deploy the direction and tasks of public investment in 2022

During the year, the province started a number of projects such as the administrative center of Bac Tan Uyen district, the bridge over the Dong Nai river, the archive of the Department of Natural Resources and Environment, the Phu Giao sourcing school, the My Thanh secondary school etc. while completing and putting into use 30 projects.

Speaking at the conference, Mr. Mai Hung Dung said: "In 2021, despite being heavily affected by the COVID-19 epidemic, relevant agencies and units have made great efforts to speed up the disbursement of investment capital to public private sector, especially after the province returns to its new normal; thereby, contributing to stimulating social investment demand while maintaining growth in 2021 at an appropriate level and creating a solid foundation for the economic recovery process.

Drawbacks remained

Beside the achieved results, the province's public investment still faces many drawbacks and shortcomings. Specifically, the disbursement rate of public investment plans is low compared to the same period last year as many projects are behind schedule. Site clearance and resettlement support are still the main bottlenecks in capital disbursement for public investment as there is no effective solution. The appraisal and approval of land unit prices is still slow to affect the implementation of site compensation.

At the conference, Mr. Nguyen Thanh Tam, Chairman of Thuan An city People's Committee, said: "In 2021, the city disbursed public investment only at 38.5% due to high capital allocation, mainly site compensation and clearance. Currently, Thuan An city is implementing projects, but by the end of the first quarter of 2022, the disbursement rate is very low, and it is difficult for fixing the land unit price for compensation. Specifically, in terms of land price compensation for people in the resettlement area and according to the decision to allocate land to people at any time, the fees is calculated at the time. But so far, people do not agree to be compensated at the former price and demand for compensation at the current market prices."

Reporting to the provincial People's Committee on shortcomings in site compensation and clearance, Mr. Tran Sy Nam, Deputy Chairman of Thu Dau Mot city People's Committee, said: “The city's capital construction investment has faced many shortcomings. Regarding site clearance and compensation, from the stage of determining the land price to the approval of the unit price, the compensation and clearance price of some works has increased by 3-4%, making them go back to doing the procedures from the beginning, which delays the project.”

Capital resources prioritized for site compensation and clearance

In order to speed up the progress of key projects and to promptly remove obstacles and ensure the completion of the public investment plan in 2022, the provincial People's Committee has proposed four groups of key solutions including submitting orders and procedures, implementation, and inspection and supervision mechanism. In particular, they should focus on reviewing additional capital sources in the 2022 public investment plan for projects that can be implemented with additional disbursement, contributing to the speeding up of the project implementation and completing and putting them into operation at the soonest to promote investment efficiency.

Projects completed in 2022 are transitioned to completion after 2022 with focus on construction as contractors, acceptance, payment and disbursement of capital are urged. Settlement reports of completed projects are expeditiously made to complete the legal procedures, take over and immediate pay for the completed qualified works. New construction projects in 2022 must complete the formulation, appraisal and submission to competent authorities for approval of the contractor selection plan in accordance with the law along with the formulation, appraisal and approval of construction drawing design documents and construction estimates as the basis for organizing the selection of construction contractors to start the works at the soonest.

For projects allocated with capital to carry out the investment preparation, the formulation, appraisal and approval of the contractor selection plan are urgently organized to complete investment preparation documents and to ensure the quality of the stages of survey, pricing, basic design, etc. to minimize the adjustment of policy and project adjustment with focus on directing, solving and removing obstacles for harmony of the interests of the parties regarding the site clearance and compensation.

Concluding at the conference, Mr. Vo Van Minh, Chairman of the provincial People's Committee emphasized that the complicated COVID-19 epidemic in 2021 has greatly affected public investment. However, the units have made efforts to implement. In the coming time, the province will focus on implementing groups of solutions by focusing on early adjustment of public investment capital, key projects, and site compensation and clearance. Investors must have a specific plan associated with the disbursement and compensation schedule.

The Chairman of the provincial People's Committee requested that the districts, towns and cities should drastically direct and strengthen the Compensation Council. He requested the chairmen of districts, towns and cities to directly inspect the implementation and promptly solve any problems. “Currently, many key projects of the province pass through most of the localities in the province, especially in Di An city, Thuan An city, thus requiring localities to review and proactively announce the land fund. For departments and branches, it is necessary to speed up the appraisal, shorten the time, and ensure the progress of the works while focusing on the selection of consulting contractors and ensuring their capacity and efficiency and in accordance with the laws. The Department of Natural Resources and Environment should coordinate with the units to promptly remove obstacles and closely direct the Land Fund Development Center to promote the site compensation and clearance," Mr. Vo Van Minh emphasized.

Reported by Phuong Le – Translated by Vi Bao