Pressure to disburse funds, Quang Nam authorities deploy many policies

Accelerating investment progress and project disbursement is one of the driving forces for economic development.

Disbursement rate is low compared to the national average

Quang Nam has thousands of projects and constructions throughout the area. Not only do large capital projects lack human resources, but even the provincial block with specialized management boards... are also sluggish in disbursing funds.

According to statistics from the State Treasury of Quang Nam, as of September 27, 2024, public investment capital in 2024 (excluding centrally managed projects) disbursed only nearly 40.8% (VND 3,624 billion/VND 8,884 billion). This rate is lower than the same period (about 43.8% in 2023), lower than the average disbursement rate nationwide (42.63%).

The 2024 public investment capital plan only reached 38.8% (2,741 billion/7,057 billion VND). The 2023 capital plan has a slightly longer disbursement time, but still cannot reach 50% when it only reaches 48.3% (883 billion/1,827 billion VND). Another statistic announced that only 10/27 provincial investors and 6/18 localities achieved a disbursement rate of more than 50%.

Chairman of the Provincial People's Committee Le Van Dung chaired the disbursement meetings.

According to Mr. Nguyen Hung - Deputy Director of the Department of Planning and Investment, the main reason for weak disbursement is still the lack of drastic and close management and operation. Land clearance is prolonged.

Insufficient human resources for site clearance. Lack of common construction materials, high cost compared to estimated unit price. Most of the projects are in the form of lump sum contracts or fixed unit prices, leading to some contractors implementing construction at a slow pace, waiting for updates and adjustments to the construction price index to match market unit prices.

Projects using the transitional central budget must complete the planning year (2024). According to the Prime Minister 's regulations, priority must be given to allocating sufficient capital for the project from the beginning of the year. When problems arise and the disbursement rate is low, it is still difficult to adjust the capital plan down, to switch to other projects with good volume and disbursement rate.

Chairman of the Provincial People's Committee Le Van Dung requested that by October 10, 2024 at the latest, if the capital is not spent, investors must report and propose to the Provincial People's Committee to transfer capital. After October 10, 2024, if investors and localities do not report, they will be held responsible if they do not complete the project by the end of the year. The head and the person in charge will be assessed as not completing the task.

In addition, the complex weather in the mountainous areas, prolonged rains, and high risk of landslides have caused construction to be interrupted. Medical projects have encountered difficulties related to equipment valuation. Projects using ODA capital have been delayed due to the donor's review and approval of investment procedures, contractor selection plans, and capital withdrawal documents, which are often very long.

The remaining 3 National Target Programs lack synchronous coordination, unity and high determination in direction and management from the Party Committee to the government. Many projects are stuck with forest land, planning still exists, laws overlap and even the career capital of more than 100 million VND still has to be bid... leading to impact on disbursement progress.

Hoi An sea embankment is speeding up progress, expected to be completed by the end of September 2024.

The reasons cited for the low disbursement rate are nothing new. Chairman of the Provincial People's Committee Le Van Dung said that the current low disbursement progress is unacceptable. We cannot blame the mechanism, policy, this or that cause.

Why, with the same mechanism and policy, some investors and localities disburse well, but we do not? Investors and localities must review their responsibilities and recognize their weaknesses when they cannot disburse all capital. Is it because of the lack of responsibility and determination in management and operation of investors or local authorities?

Find the best way to disburse

Investors and localities have all committed to disbursing the maximum amount of public investment capital in 2024. However, according to analysis by management agencies (Planning and Investment, Finance, State Treasury), disbursing all investment capital in 2024 is just a political determination; it cannot be done when there are only 4 months left until the end of the fiscal year.

Many projects that have stopped construction will not be able to complete on schedule and disburse funds.

Mr. Nguyen Hung said that the disbursement is only 3 months away. The remaining capital to be disbursed is about 5,500 billion VND. The source extended from 2023 to 2024 is very large. This capital is only allowed to be disbursed in 2024, so investors and localities will have to prioritize the disbursement of all these extended capital sources, which is already extremely difficult.

Considering the responsibility of investors and localities when disbursement is low is something that will be done. But that is not as important as how to improve the capacity of investors to be able to spend all public investment capital in 2024. Investors and localities are committed to disbursing 100% of capital in 2023. They will review, request to transfer sources or return capital to the provincial budget.

Mr. Le Van Sinh - Chairman of Nui Thanh District People's Committee admitted that the local capacity is weak, so although they have reviewed which projects are not capable of being implemented, they will be transferred, but they cannot achieve a good disbursement rate, only stopping at the advance payment or payment for a few large-volume projects. They will try to disburse as much as possible, especially the consulting part, and the undisbursed capital will be transferred or returned to the budget.

Actual progress shows that it is impossible to disburse 100% of the 2024 capital plan. Cutting and transferring capital to increase the disbursement rate is only a temporary and situational solution. However, in the current context, this "mechanism" is the best method.

Mr. Nguyen Hung said, we must immediately transfer within the industry, speed up the progress of central capital, and not let it drag on. Compensation and site clearance projects that have been dragging on for many years and cannot be implemented must be cut, stopped, and settled, and not allowed to drag on beyond the prescribed time...

The 129 road project on the Nui Thanh side is being accelerated.

“Investors and localities should propose early capital repayment and transfer. If they want to transfer and speed up progress, it must be completed before November 15, 2024,” said Mr. Hung.

The pressure to disburse the remaining time is too great. According to Vice Chairman of the Provincial People's Committee Tran Anh Tuan, no matter what the solution is, capital loss must be limited. 100% of the extended capital plan must be disbursed. Priority must be given to disbursing central capital.

Local leaders and investors cannot stand aside. Determine the remaining tasks in each project, divide the investment, and from there consider which ones should be transferred and which ones should be resolutely disbursed. Any works and projects that are unforeseen must be transferred before November 15, 2024.

Chairman of the Provincial People's Committee Le Van Dung requested investors and localities to have the highest determination to achieve the best disbursement rate. Investors should proactively check and review the disbursement capacity of each specific project with a low disbursement rate to propose to competent authorities to adjust the capital plan to projects that ensure volume and can be disbursed immediately upon receiving additional capital sources within each unit or recommend competent authorities to adjust the annual capital plan to transfer to units and localities in need of additional capital in the upcoming Provincial People's Council meeting scheduled for the end of October 2024. Prioritize the allocation of sufficient funds to carry out compensation and site clearance for eligible areas. Avoid the situation of projects waiting for site clearance, "soaking" capital, reducing project investment efficiency. Regularly report on project progress (every two weeks).

Source: https://baoquangnam.vn/ap-luc-giai-ngan-chinh-quyen-quang-nam-trien-khai-nhieu-ke-sach-3142085.html