Ho Chi Minh City calls for investors in 210 projects
HCM City calls for investment in 210 projects worth US$51.6 billion
HCM City eyes systematic public investment

HCM City is seeking to speed up spending on public projects after many districts reported slow rates so far this year. — VNA/VNS Photo

A report tabled at a meeting chaired by vice chairman of the city People’s Committee, Tran Vinh Tuyen last week showed only 26 per cent of the funds earmarked for this year of VND33.17 trillion (US$1.42 billion) had been disbursed in January-July, far below the target of 50 per cent.

Only 13 districts of the 24 districts had a disbursement rate of over 50 per cent.

District 11 had the lowest rate of 4 per cent.

A district People’s Committee official said the outlay for this year was VND101 billion ($4.35 million), mainly for four key schools and children’s cultural houses.

The district received the money late, resulting in slow disbursement, he explained.

Nguyen Thanh Phuong, deputy chairman of the Phu Nhuận People’s Committee, said the district had disbursed only VND13 billion out of VND88 billion planned to disburse this year.

The money for some large public projects, including upgrades to the district People’s Committee office, had been delayed this year, he said.

He blamed the slow spending on tardy land acquisition for some projects, delayed completion of administrative procedures and slow final settlement in other projects.

But the district would disburse 95 per cent by year-end, he said.

According to district leaders, since usually land compensation is paid in September and October, the disbursement rate is very high in the latter part of the year.

Tuyen asked why the disbursement rate was different in each district, saying while he understood that each is in a different situation, their leaders need to again review the reasons for slow disbursement.

He instructed the leaders of the 11 districts with disbursement rates of less than 50 per cent to submit to the city People’s Committee reports on each project, explaining the reasons for the slow progress and suggesting solutions to speed up disbursement.

He also called on all project management boards to carefully manage their funds.

He instructed the Department of Planning and Investment to organise a seminar in October to discuss the management of the State budget.

He wanted the Department of Natural Resources and Environment to work with the Ministry of Natural Resources and Environment to reduce the time it takes to pay compensation for land and resettlement assistance.

This would reduce the time taken to acquire land and speed up work, thereby also speeding up public spending, he added.

VNS