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Economics

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Adjusting the public investment plan in 2019 to ensure the balance of investment capital

Up to this point, the situation of public investment implementation in the province has many difficulties and problems. In order to ensure the principles of allocating the annual public investment plan capital and the ability to balance the investment capital from the local budget, the Provincial People's Committee developed a plan to adjust the public investment plan in 2019. Accordingly, It is expected that the total capital of the province's public investment adjustment plan this year is over 12,139 billion VND 462 million, an increase of 4,318 billion 149 million compared to the beginning of the year.

The construction progress of the 1,500 bed hospital project is speeding up. Photo: Phuong Le

Low disbursement rate

In 2019, the province's public investment plan is more than VND 7,821 billion. As of May 31, the total volume reached 1,750 billion VND, equaling 22.4% of the plan; Total disbursement value is VND 1,094 billion, equal to 14.8% of the plan.

This year, the plan to implement key projects under the Provincial Program 23 of the Party Committee arranged 45 projects, totaling VND 4,159 billion. By May 31, the volume of these works reached 590 billion VND, equaling 14% of the plan, the disbursement value was 377 billion VND, equal to 14% of the plan; 23 projects have not been disbursed. Also in this year, the province arranged 10 compensation and ground clearance projects with a total arranged capital of VND 867 billion. By May 31, the volume of these works was VND 129 billion, equaling 14.8% of the plan; disbursement value of VND 90 billion, equal to 10.4% of the plan; 9 projects have not been disbursed.

The above results show that the implementation of public investment in the province is still difficult and difficult. In particular, key projects and compensation, site clearance progress and disbursement are also slow; The capital allocation plan for these projects accounts for the majority (67.1%) of local budget capital but the disbursement rate is lower than the overall rate of the province. Meanwhile, the projects preparing to invest in the implementation and disbursement progress are also slow, only 2.3% of the plan. The cause is determined by the procedure must go through many steps, such as the process of appraising and approving the estimate of investment preparation capital, investment policy, project approval.

At the recent meeting of adjusting public investment plans in 2019, Mr. Nguyen Thanh Truc, Director of Department of Planning and Investment, said the cause of disbursement of public investment plans is low because the investors have not yet trained. medium and drastic in building capital planning needs and monitoring, urging and directing the stages from preparing investment to bidding to implement the project, leading to a number of project files for appraisal poor quality, must return. In addition, a number of projects generating items, changing compensation unit prices must adjust the project, adjust the design, making the investment preparation time consuming. Along with that, the projects preparing to invest in the implementation progress and disbursement are slow due to the order and procedures must go through many steps, such as the process of appraising and approving the estimated capital for investment preparation, the investment policy, approval. browse the project. Group B projects must submit to the meeting of the People's Council for approval of investment policy, so in the first 6 months, the dossier has not been completed and the capital has not been disbursed.

In order to overcome the above situation, the Provincial People's Committee proposed that localities and relevant agencies accelerate the implementation and disbursement of important and key projects, compensation and ground clearance projects to hand over. Construction ground; urging investors to ensure the prescribed time; promptly solve the difficulties and obstacles in the project implementation process of investors.

At the aforementioned meeting, the PPC approved the adjustment of the second medium-term 2016-2020 public investment plan and adjusted the public investment plan for 2019. Accordingly, this plan is suitable according to the source balancing capacity resources and situation of project implementation to create a basis for investors to disburse capital plans in 2019.

The provincial People's Committee asked the concerned branches and localities to propose the investors of the projects to urge the contractor to concentrate on completing the acceptance and payment procedures, not to accumulate the volume at the end of the year, especially works with large volumes of compensation and clearance; carry out the advance payment procedures as prescribed. The provincial People's Committee also directed related units to review the works that are being carried out the approved settlement procedures to urge the investors to implement the prescribed time; strengthen inspection and examination of construction investment projects in accordance with regulations to improve investment efficiency, avoid losses and waste of investment capital.

Balance investment capital

In order to ensure the principles of allocating the annual public investment plan capital and the ability to balance the investment capital from the local budget, the Provincial People's Committee developed a plan to adjust the public investment plan in 2019. Accordingly, It is expected that the total capital plan for adjusting public investment in 2019 will be over VND 12,139 billion, VND 462 million, up VND 4,318 billion 149 million compared to the beginning of the year. Specifically, the province allocates capital to 139 projects with a total capital of 3,041 billion VND 942 million; arranged to reduce capital of 68 projects with a total capital of VND 79 billion 252 million; suspending 21 projects with a total capital of VND 30,585 billion; supplementing the list of 27 projects with a total capital of VND 79 billion 252 million.

According to Mr. Truc, the adjustment of the public investment plan in 2019 aims to ensure the principles of allocating annual public investment capital in accordance with Article 54 of the Law on Public Investment and guiding documents; at the same time, to supplement and update capital sources according to the annual central plan and the capability of actual mobilization of the locality into the 2019 public investment plan. Along with that, the adjustment to reduce the arranged capital of some projects have progressed slowly or after reviewing the determination of capital surplus (due to the reduction of reciprocal capital through bidding, stopping the preparation of investment, payment reduction and settlement); adjusting capital for projects with fast progress and increasing capital needs to accelerate implementation in 2019.

Mr. Truc added that the adjustment of the 2019 public investment plan focused capital on key projects, projects to compensate for site clearance and projects that could be completed in the year. The addition of some lists is to prepare investment in a number of important and urgent projects arising in the process of operating socio-economic development, projects that have been advocated by the Provincial Party Committee. , People's Council, People's Committee, allocate capital to implement the project from the surplus and reserve funds, supplemented according to Decree 120/ND-CP dated September 13, 2016 of the Government.

To complete the public investment plan in 2019, Mr. Tran Thanh Liem, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee, requested the branches, localities and investors to improve their responsibilities in the construction investment; select consultants, qualified contractors. The contents of public investment adjustment plans, assigned by the Department of Planning and Investment and the Department of Finance to advise the Provincial People's Committee to build operating solutions to fulfill public investment tasks in the coming time.

Reported by Phuong Le – Translated by Vi Bao

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