Many large projects are at risk of being delayed due to lack of capital.

Several large projects in the western region of Lam Dong province have started construction and are expected to be completed in 2025, but are behind schedule due to lack of capital.

Dak Nong Museum, Library and Park Complex started construction in 2019 but remains unfinished.

The road project from Village 1 to the Mong ethnic minority area, Nam Tang Village (connecting Dak Mil commune and Cu Jut commune) was approved in 2020 with a total capital of 79 billion VND. The project started in August 2021 and is expected to be completed in the period 2021 - 2025. After 4 years, the project has completed 68% of the contracted volume.

The project requires a total construction capital of more than 71 billion VND, but by the end of 2024, only more than 51 billion VND has been allocated. In 2025 alone, the project will only be allocated 4 billion VND, which is very low compared to the completion needs. Although the contractor has gathered machinery, equipment and materials, it has not been able to speed up the construction progress due to lack of capital. The investor, Construction Investment Project Management Board No. 3, has proposed to supplement the remaining nearly 20 billion VND to avoid construction interruption.

Started in 2019, Dak Nong Museum, Library and Park Complex (with a total investment of 124.74 billion VND) is a large-scale cultural project. Up to now, the project has only been allocated 86.04 billion VND, of which only 14.14 billion VND will be allocated in 2025. The lack of more than 37 billion VND has caused a number of items to be suspended, with the risk of not being completed in 2025.

Not only transportation and culture, large and important projects in the field of irrigation also face difficulties. The Nam Xuan Lake Canal System Project was approved by the Ministry of Agriculture and Environment in 2022, with a total capital of more than 242 billion VND (over 200 billion VND from the central budget, the rest is local capital).

While the central government has basically met the demand, local counterpart funds have only been allocated 25.48/42.19 billion VND. If the remaining 16.7 billion VND is not supplemented, the plan to complete by 2025 will be difficult to achieve, and additional costs will arise due to prolonged construction.

Another project that is lacking in funding is the Project to Improve Water Use Efficiency in Drought-Affected Provinces (WEIDAP/ADB8). This project has a total investment of more than VND400 billion, including ODA capital (nearly VND300 billion) and local counterpart capital (more than VND100 billion).

The project is divided into two sub-projects (in two old district-level administrative units, Dak Mil and Cu Jut), implementing construction and site clearance packages at the same time. The local budget capital requirement in 2025 is nearly 41 billion VND, but only nearly 22.2 billion VND has been allocated. The remaining budget (nearly 18.8 billion VND) is for compensation, support for people and payment to contractors. If not arranged in time, the plan will stagnate.

All four projects mentioned above are implemented in the western region of Lam Dong province, with Project Management Board No. 3 as the investor. These are key infrastructure projects, directly impacting the local socio -economic development. The delay in capital allocation not only causes stagnation in progress but also causes many consequences such as: increased costs, reduced investment efficiency, waste of resources...

According to the leader of Project Management Board No. 3, the lack of allocated capital makes both the investor and the contractors very impatient. It is difficult for the investor to urge the contractors to complete the projects according to the plan when the allocated capital is not enough for the missing volume because it is easy to cause outstanding debts in basic construction.

“We have proposed that the Department of Finance promptly synthesize and advise the Provincial People's Committee to balance and allocate sufficient capital for 2025, prioritizing projects that are about to be completed. Removing capital bottlenecks is a prerequisite for projects to avoid delays, ensure quality and promote efficiency when put into use,” said the leader of Project Management Board No. 3.

Source: https://baolamdong.vn/nhieu-du-an-lon-co-nguy-co-tre-hen-vi-thieu-von-387545.html