Currently, localities have been tightening public discipline, focusing on implementing site clearance, speeding up construction progress, removing obstacles in the disbursement process..., striving to disburse 95% of capital in 2024 according to the plan assigned by the Prime Minister.
Disbursement is still slow
As of October 25, Ho Chi Minh City has disbursed over 17.27 trillion VND in public investment capital, reaching 21.8% of the 2024 plan, down 2.3% over the same period. The city’s public investment disbursement rate is low due to problems with site clearance, construction investment procedures, slow disbursement procedures, and shortage of sand sources, etc.
For example, at Project Component No.1 (Ho Chi Minh City Ring Road 3), the progress of 10 construction and installation packages met the plan, but the disbursement rate only reached 19.5%, due to the slow completion of documents for disbursement and the process of constructing public roads, handling weak soil, etc., prolonged due to waiting for sand sources, so it was not eligible for acceptance. As for the Tran Quoc Hoan-Cong Hoa road connection project (total investment capital of about 4.8 trillion VND, including 5 construction packages), the progress reached 78% of the volume.
In August 2024, the project opened the Tran Quoc Hoan-Phan Thuc Duyen underpass package (three months earlier than planned) and is expected to complete the entire project in December 2024. The project still ensures construction progress according to plan, but the disbursement rate in the past 10 months has only reached 21.1% due to the unfinished compensation and resettlement work.
Similarly, the implementation progress and disbursement of public investment capital of Hanoi have not met the requirements. By the end of October 2024, the disbursed public investment capital of the whole city was 36.5 trillion VND, only reaching 45% of the estimate.
According to the report of the Department of Planning and Investment, as of October 25, there were 33 units that had not yet met their commitment to disburse public investment capital. The reasons were due to difficulties in site clearance, difficulties in determining compensation prices, and limitations in the capacity of investors and contractors...
For example, the project to build Ring Road 1, Hoang Cau-Voi Phuc section (phase 1) passing through Dong Da and Ba Dinh districts with a length of 2.3 km has a total investment of more than 7.2 trillion VND in phase 1 from the city budget, of which the cost of site clearance is 5.8 trillion VND.
The project was approved in December 2017 and was expected to be completed in 2020, but due to slow site clearance, it is expected to be completed in the first quarter of 2025. However, to date, the project has only disbursed 39.6% of the capital plan because many households subject to relocation have not agreed to hand over the site.
As for Bac Ninh province, as of October 14, the province has only disbursed over 2.8 trillion VND in public investment capital (including capital transferred from 2023), reaching 30.8% of the capital allocated by the Government.
The province has 11 out of 26 investors with disbursement rates below the national average, 10 out of 26 investors with disbursement rates below the provincial average, even some investors such as the Department of Industry and Trade, District Project Management Boards of Tien Du, Thuan Thanh, Luong Tai, Que Vo, Yen Phong have disbursement rates below 20%. With the above results, Bac Ninh is a province with a low public investment capital disbursement rate, below the national average.
Striving to achieve a disbursement rate of 95% or more
Given this situation, local Party committees and authorities have proposed many solutions to speed up the disbursement of public investment capital, striving to achieve the plan assigned by the Prime Minister.
In early October 2024, at the meeting of the Standing Committee of the Steering Committee for key projects of Ho Chi Minh City and the meeting on public investment disbursement, Chairman of the City People's Committee Phan Van Mai affirmed that the City will not adjust the public investment disbursement target in 2024 (striving to reach 95%), and at the same time, require each investor to make a disbursement plan and report on progress updates to the Standing Committee of the City People’s Committee on the 15th of each month; investors must closely monitor each project and construction volume.
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| A new, spacious and clean HC2 underpass branch has been opened to traffic at the Nguyen Van Linh-Nguyen Huu Tho intersection. (Photo: The Anh) |
Since the end of October, leaders of the City People’s Committee have continuously inspected the field and urged the progress of public investment disbursement at key projects in the area. At the National Highway 50 upgrade project, the section through Binh Chanh district, there are currently eight households that have not yet handed over the land. The project investor has prepared 10 plots of land for resettlement or exchange for these households.
Vice Chairman of the City People’s Committee Vo Van Hoan requested the Binh Chanh district government and the investor to meet directly with households that have not yet handed over the land, explain in detail so that people clearly understand the regulations and benefits when agreeing on the compensation plan and handing over the land early; at the same time, requested the district and related units to urgently resolve problems to speed up the progress of public investment disbursement.
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| A new, spacious and clean HC2 underpass branch has been opened to traffic at the Nguyen Van Linh-Nguyen Huu Tho intersection. (Photo: The Anh) |
As for the project to build a road connecting Tran Quoc Hoan Street - Cong Hoa Street (gateway to Tan Son Nhat Airport, Tan Binh District), there are 85 cases affected. The city leaders requested Tan Binh District to closely coordinate with units to urgently complete procedures for compensation, support, resettlement, and site clearance in November to hand over to the investor to implement the project, ensuring progress according to plan.
With the goal of achieving a disbursement rate of 95% or more by the end of 2024, Chairman of the People’s Committee of Bac Ninh province Vuong Quoc Tuan requested directors of departments, heads of sectors, leaders of districts, towns and cities with projects assigned public investment capital to directly direct and control the disbursement progress weekly and monthly and take full responsibility to the province for the disbursement results in 2024.
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| Chairman of the People’s Committee of Bac Ninh province Vuong Quoc Tuan (third from right) inspects the progress of traffic works in the area. (Photo: An Tran) |
The province has launched the emulation movement entitled “100 peak days to resolve difficulties and obstacles in implementing public investment projects in the area” from August 15 to November 22 with the participation of the entire political system.
On October 2, the province continued to launch the emulation movement entitled “455 days and nights to complete the construction of the parallel road (urban road) through Bac Ninh province under the investment project to build the 4th Ring Road - Hanoi Capital Region”. The determination of the head of the government has created significant changes.
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| Bac Ninh province speeds up the construction progress of the 4th Ring Road and provincial roads. (Photo: An Tran) |
According to Director of Kien Thanh Construction Company Nguyen Duc Kien, the construction unit of the technical infrastructure project for the resettlement area serving the 4th Ring Road - Hanoi Capital Region project in Ninh Xa ward, Thuan Thanh town, immediately after receiving the bid package and completing the legal procedures, the unit started construction of the items of leveling the wall, embankment of internal traffic roads, water supply and drainage systems, fire prevention and fighting.
According to the plan, the project must be completed within 230 days, but to meet the housing needs of households and ensure the progress of capital disbursement, the unit committed to handing over the project earlier than planned. With specific and close solutions, the rate of public investment disbursement in Bac Ninh has had positive changes. According to Director of the Department of Planning and Investment of Bac Ninh province Nguyen Dinh Xuan, as of November 15, the province has disbursed more than 3.8 trillion VND (including extended capital), reaching a rate of 55.2%.
To speed up the disbursement of public investment capital and achieve the target set by the Prime Minister, the leaders of Hanoi city require units to resolutely direct, operate, and implement measures to accelerate the progress of projects such as “construction in 3 shifts”, “working on holidays, Tet holidays”... Investors must improve the quality of project investment preparation, closely follow the process of document processing to promptly explain and complete.
The departments of Construction, Transport, Agriculture and Rural Development, and Planning and Investment must proactively urge investors to complete documents for appraisal and approval of feasibility study reports, contractor selection plans, technical designs and estimates... to overcome the situation of “capital waiting for projects”. Representatives of the State Treasury of Hanoi city arrange personnel to work on holidays, striving to achieve the highest disbursement rate by the end of the budget year.
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| Contractors are speeding up the construction of the Tam Trinh road project in Hoang Mai district, Hanoi. (Photo: Nguyen Trang) |
At the Tam Trinh road project, about 3.5km long in Hoang Mai district, Hanoi, the construction unit is speeding up the progress. Director of the Hoang Mai District Land Fund Development Center Vu Tuan Dat said that by the end of 2024, the district is striving to complete the approval of compensation, support and resettlement plans to implement the Tam Trinh road construction project.
According to a representative of the Hoang Mai District Construction Investment Project Management Board, the unit is mobilising machinery and human resources, divided into four continuous construction teams, and is expected to put the road into use in June 2026.
