Reasons why many provinces and cities in the Central Highlands are slow to disburse public investment capital

Low disbursement rate

In Gia Lai , according to the provincial Department of Planning and Investment, key projects are behind schedule in disbursing public investment capital due to a lack of materials for the projects, slow site clearance, and a prolonged rainy season.

According to statistics, in 2024, the State budget investment plan approved by the Government assigned to Gia Lai province is 4,036 billion VND. As of July 6, 2024, the total disbursed capital is 978 billion VND, reaching 22.4% of the plan, 6.37% lower than the average disbursement of the whole country (28.77%).

In Kon Tum province, as of June 30, 2024, the investor has disbursed more than 617 billion VND, reaching 26.8% of the actual capital plan for 2024 (617 billion VND/2,298 billion VND).

With the current disbursement rate, it is expected that by the end of this year, the two northern Central Highlands provinces will be at risk of not meeting their targets and plans. Mr. Dinh Huu Hoa - Deputy Director of the Department of Planning and Investment of Gia Lai province informed that many key projects are facing difficulties in procedures and sources of raw materials, forcing contractors to temporarily stop.

The Eastern Economic Corridor Road Project (total investment capital of 1,200 billion VND) has some sections that are not in accordance with the land use planning of Chu Pah district. The adjustment of land use planning has slowed down the project's site clearance progress...

Some other projects had to adjust their investment policies, affecting the progress of implementation and disbursement, such as: Construction Project 331; Radiation Therapy Area and Equipment Project of Gia Lai Provincial General Hospital...

The Kon Tum Province Civil and Industrial Construction Investment Project Management Board said that the project to build, renovate and upgrade Provincial Road 676 connecting Kon Plong District, Kon Tum Province with Son Tay and Son Ha Districts, Quang Ngai Province is a key, inter-regional project.

After nearly 2 years, the project was approved by the Prime Minister to change the purpose of forest use. When completing the procedure of paying for replacement forest planting, the locality had to spend a lot of time completing the documents to submit for consideration of changing the purpose of forest land use to other purposes. Therefore, the construction and disbursement of funds for the project were behind schedule.

In addition, the Project to Upgrade Kon Tum Provincial Traditional Medicine and Rehabilitation Hospital to 165 beds; the Provincial Police Headquarters Project; the Urban Rehabilitation Project, creating land fund to implement the planning of the eco-tourism and urban area combining sports, Dak Ro Wa Commune, Kon Tum City... are also behind schedule.

Handling the responsibility of investors for slow capital disbursement

According to Mr. Dinh Huu Hoa - Deputy Director of the Department of Planning and Investment of Gia Lai province, currently when completing documents and procedures for new projects, the rainy season lasts for many months, so construction units have to temporarily stop implementation, slowing down progress as well as affecting the disbursement of public investment capital. Therefore, the rate of public investment disbursement in Gia Lai is lower than that of other provinces.

In Kon Tum, Chairman of the Provincial People's Committee Le Ngoc Tuan directed the Department of Planning and Investment to urgently propose specific disciplinary measures for investors with a disbursement rate of less than 50% due to subjective reasons.

According to Chairman of Kon Tum Provincial People's Committee Le Ngoc Tuan, project investors and leaders of districts and cities need to seriously overcome limitations and shortcomings in order to create substantial changes in industry and sector management in the spirit of: "If you promise, you must do it, if you do it, you must do it and there must be results, specific products that can be verified and measured".

Kon Tum province also proposed to strictly handle the responsibilities of investors who delayed the disbursement of allocated capital. In particular, promptly replace officials, civil servants, and public employees who are weak in capacity, slow, causing harassment and negativity.

Source: https://laodong.vn/kinh-doanh/nguyen-nhan-nhieu-tinh-thanh-o-tay-nguyen-cham-giai-ngan-von-dau-tu-cong-1379219.ldo