By the end of April, the disbursement rate of public Investment capital remains low because many ministries and local governments have not drastically fulfilled this task.

17 ministries and sectors have not yet disbursed

According to the latest report of the Ministry of Finance, the disbursement rate in the first four months of the year is estimated at 18.48% of the plan assigned by the Prime Minister.

This figure declined slightly compared to the same period in 2021 (18.65%). In particular, domestic capital reached 19.57% (it reached 20.74% over the same period in 2021), and foreign capital reached 3.25% (it reached 2.02% over the same period in 2021).

According to statistics, by the end of April, there were seven ministries and eight localities with a disbursement rate of over 25%. Some ministries and localities have high disbursement rates, including the Bank for Social Policies (91.12%), Development Bank (59.64%), Central Committee of Vietnam Fatherland Front (48.86%), State Bank of Vietnam (35.76%), Binh Thuan (33.9%) and Phu Tho (33.4%).

However, there are 43 out of 51 ministries and 28 out of 63 localities with disbursement rates below 17%. In particular, 17 ministries and sectors have not disbursed capital plans yet.

The Ministry of Finance explained that the investors of some ministries, sectors and localities have not been drastic in leadership, giving direction and implementation.

Another reason is that new construction projects are bidding to select consulting contractors; are preparing construction designs and total cost estimates so the assigned capital plan has not been disbursed.

Some projects encountered problems in site clearance. Besides that, the increase in the price of construction materials, especially iron, steel, and petroleum, the limited supply of materials for large projects is also the cause of slow capital disbursement.

Particularly for projects using foreign capital, some projects are disbursed in the form of revenue and expenditure, the implementation process must comply with the procedure of sponsors. It must go through many steps and ask for the donor's opinion so it affects the disbursement progress. Some projects are in the process of compiling equipment lists from component projects to prepare for international bidding procedures.

Update progress of many key projects

The Ministry of Finance has also updated the disbursement of key projects across the country, including the project of land acquisition, compensation, support and resettlement at Long Thanh International Airport. According to a report of the State Treasury, up to this point, the project has disbursed VND14,719 billion, reaching 64.41% of the assigned plan.

For the East North-South Expressway Project in the 2017-2020 period, by the end of April, the project has disbursed VND2,963 billion, reaching 17.6% of the assigned 2022 plan.

According to the Ministry of Transport, the site clearance work has been basically completed. Until now, 652.8/652.86km has been compensated (reaching 99.99%). With the component projects, currently, there is one completed project, ten projects are under construction, and the total volume of construction and installation so far is about VND19,434 billion.

As for the East North-South Expressway project in the 2021-2025 period, the project is being prepared by the Ministry of Transport for study the feasibility of component projects for investment approval as prescribed.

The progress of implementation so far is being carried out following the milestones in Resolution No. 18/NQ-CP and the conclusion of Deputy Prime Minister Le Van Thanh in Notice No. 71/TB-VPCP dated March 14/2022.

Currently, the new project has been assigned VND257 billion by the Prime Minister for the medium-term public investment plan in the 2021-2025 period in order to prepare for investment. Regarding the allocation of the second phase for the 2022 plan, the project is allocated VND257 billion to prepare for investment. According to a report of the State Treasury, by April 1, 2022, VND159.176 billion has been disbursed, reaching 23% of the assigned plan.

Source: Customs News