Rectifying and strengthening the management of advance payment of public investment capital from the state budget

Accordingly, to ensure the recovery of advanced capital, especially overdue advanced capital, and at the same time strictly implement Directive No. 20/CT-TTg dated July 12, 2024 of the Prime Minister on rectifying and strengthening the management of advanced capital for public investment from the state budget of ministries, central agencies and localities, the Chairman of the Provincial People's Committee requested agencies, units and localities to have drastic directions and measures to focus on recovering advanced capital for investment from the state budget.

Construction of Provincial Road 156 project, Kim Thanh - Ngoi Phat section.

Local departments and branches must closely follow and strictly implement the Prime Minister's direction in Directive 20/CT-TTg dated July 12, 2027, in which special attention must be paid to "Strictly managing expenditures transferred from the state budget and thoroughly handling cases of advances exceeding the prescribed time limit for many years", promptly recovering overdue advances, ensuring that advances in the coming time are in accordance with regulations, for the right purpose, for the right subjects and using advanced capital effectively, not allowing overdue advances to arise.

The secretaries of district, town and city party committees and party committee secretaries of departments and project management boards focus on directing and taking responsibility before the Provincial Party Committee, People's Council and Provincial People's Committee for the results of implementing Directive No. 20/CT-TTg dated July 12, 2024 of the Prime Minister.

The Department of Finance shall preside over and coordinate with the Provincial State Treasury to periodically urge investors to recover advanced capital and overdue advanced capital every month; periodically report to the Provincial People's Committee every month to take measures to recover all overdue advanced capital according to the provisions of Clause 6, Article 10 of Decree No. 99/2021/ND-CP dated November 11, 2021 of the Government.

The Provincial State Treasury shall preside over and coordinate with the People's Committees of districts, towns, cities and investors to review and synthesize the advance capital and overdue advance capital (if any), periodically report monthly and propose measures to recover the advance capital and overdue advance capital to the Provincial People's Committee.

The People's Committees of districts, towns and cities direct the People's Committees of communes (as investors), regional committees, and planning and finance departments to review the advance capital and overdue advance capital (if any), periodically report monthly, propose measures to recover the advance capital and overdue advance capital and send them to the Provincial State Treasury for synthesis; speed up the progress of preparing, reviewing and approving the final settlement of investment capital for completed projects in accordance with the direction of the Provincial People's Committee in Document No. 2528/UBND-XD dated May 17, 2024.

Focus on implementing flexible, creative, timely and effective solutions to drastically accelerate the progress of public investment projects and the three national target programs. Accelerating construction progress must be associated with ensuring the quality of works and projects, avoiding negativity, loss and waste.

Strengthen inspection work, grasp the situation, promptly and effectively handle arising problems, difficulties and obstacles. Proactively review and promptly and accurately inform about difficulties and obstacles so that management agencies can have policies and solutions for direction and management in accordance with reality. For ongoing projects that do not meet progress, consider transferring capital to projects with good disbursement progress; assign specific leaders responsible for monitoring the implementation progress; closely monitor and promptly remove difficulties and take responsibility for the disbursement results, recover the remaining advances and overdue advances of each project, considering this an important basis when evaluating and classifying the level of completion of assigned tasks in 2024 of collectives and individuals.

Regarding the work of acceptance of works before putting into use, for projects under the investment decision authority of the People's Committee at the district level, the Chairman of the People's Committee at the district level is required to direct relevant departments to urgently inspect the work of acceptance of works before putting into use as a basis for finalizing completed projects to reduce overdue advances. The Provincial People's Committee will consider the responsibility of the Chairmen of the People's Committees of districts, towns and cities if the projects are left unfinished and delayed in settlement for a long time.

Investors, specialized project management boards, and regional units must comply with current regulations on capital advances. The amount of capital advances, the time of advance payment, the amount of each advance payment recovery, and the time of each advance payment recovery in accordance with regulations must be specifically stated in the contract and must be consistent with the project investment progress, contract implementation progress, and annual implementation volume. The amount of capital advances and the number of times of advance payment are specifically determined each year in accordance with the contract implementation progress in the corresponding year (if any).

For compensation, support and resettlement work: The advance capital level according to the plan and progress of compensation, support and resettlement; the maximum advance capital level as required must not exceed the compensation, support and resettlement plan approved by the competent authority.

Review the provisions on capital advances in signed and implemented contracts, ensuring compliance with legal regulations on management and contract advances (procedures for advance guarantees, terms of advance guarantees; terms of advance recovery...); strictly and effectively manage and use advance funds for the right purposes and for the right subjects according to contract regulations. Closely monitor the validity period of the advance guarantee of the credit institution to ensure that the validity period of the contract advance guarantee must be extended until the investor has recovered all the advance payment.

For ongoing projects with outstanding advances that have not been recovered: Continue to monitor and urge units to promptly implement and accept completed volumes to recover advanced capital, ensuring full recovery when the disbursement value reaches 80% of the contract value (except in cases where the competent authority allows an advance payment at a higher level).

For overdue advances: Review and specifically evaluate the cause of each overdue advance; determine the collective and individual responsibilities to repay; propose solutions to thoroughly and resolutely implement, ensuring the recovery of all overdue advances (including measures to file a lawsuit in court, transfer to inspection agencies and police).

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