Prioritizing capital allocation for key public investment projects

Along with results done, the province's public investment work in 2023 has still had some shortcomings for change. The province has proactively deployed the draft public investment plan for 2024, contributing to successfully implementing the local socio-economic development goals for the period of 2021-2025.

High disbursement value

In 2023, the province has paid attention to the direction and implementation of the local public investment plan in a drastic, timely and effective manner. The estimated disbursement of the capital plan in 2023 is higher in absolute and relative numbers compared to the same period  of  2022. This has also been the highest investment capital disbursement value so far. Some main problems for the disbursement of public investment capital for many years have basically been resolved.

My Phuoc - Tan Van - Bau Bang street is completed and put into operation

However, along with achieved results, the province's public investment has still faced some shortcomings for change. Particularly, although being improved, disbursement of public investment capital is still slow compared to the requirements and commitments of units from the beginning of the year. To complete the assigned capital plan, the remaining amount of work in the last months of the year is very large. On average, more than VND 3.2trilllion is disbursed every month by the end of the year while only more than VND 1.2 trillion was disbursed every month in the 10 first months of 2023.

In addition, queries on regulations related to public investment are still slow to be amended. Currently, some regulations between the Public Investment Law, guidance decrees and related laws such as regulations on appraisal, approval of estimates, land price calculation method, authority to decide investment policies for projects located in 2 administrative units or more… still overlap and have not been clearly specified. Although the province has repeatedly requested ministries and central sectors for guidance, up to now, they have not been completely resolved.

Site clearance and compensation are still a main bottleneck affecting the construction progress of projects. Procedures, land recovery, compensation and resettlement support projects are complicated. Some compensation policies are not consistent with reality. The preparatory work for some investment projects is not good. Some contractors have not yet guaranteed their capacity and have not mobilized resources to carry out construction projects as committed under the signed contracts.

Focusing on speeding up progress

According to provincial People's Committee’s draft report on the 2024 public investment plan funded by the State budget, capital allocation is based on the principle of clearly identifying goals and priorities in the 2023 public investment plan, appropriately with guidance on setting up a medium-term public investment plan for the period of 2021-2025 and the ability to balance investment capital sources in 2024, in accordance with the implementation ability and disbursement progress of each project in 2024. Particularly, the province will focus on prioritizing capital allocation to speeding up the progress of construction, soon completing and upholding the effectiveness of key projects, connected transportation projects, with inter-regional impacts, increasing motivation for growth while ensuring social welfare, national defense and security.

Accordingly, capital allocation will be carried out in the following order: Arranging enough capital for projects completed and handed over for use ahead of December 31, 2023; arranging enough capital for transitional projects that must be completed in 2024 under the capital allocation time; arranging enough capital to participate in the Public-Private Partnership (PPP) projects, making tasks on preparation for investment, planning, provision of charter capital to the public fund outside the State budget, counterpart capital for projects using ODA capital and preferential loans from foreign sponsors; arranging capital under the progress for the local key and inter-regional projects and transitional projects under the approved progress.

After allocating enough capital for tasks and projects in the above order of priority, capital will be allocated to newly started projects that have completed investment procedures. In case of investment procedures have not been completed at the time of planning, planning reports must commit to completing investment decisions of projects before handing over detailed capital plans for 2024 (ahead of December 31).

The efforts to make synchronous investment in infrastructure systems, speeding up implementation progress, soon completing and promoting the effectiveness of key projects and works, especially connected traffic projects with inter-regional positive impacts are important, promoting the local economic growth.

Reported by Phuong Le-Hoang Phong-Translated by Kim Tin