VietNamNet Bridge – Central government officials and deputies of the National Assembly (NA) have opposed Hai Duong Province’s plan to build a new administrative center at a cost of up to VND2 trillion.

“While we are facing tremendous difficulties at the moment, construction of a big administrative center is not recommended. Similar projects should be delayed or shelved,” Phung Quoc Hien, head of the NA Finance and Budget Committee, told local media on the sidelines of the ongoing NA sitting.

Head of the Government Office Nguyen Van Nen and other NA deputies shared Hien’s view while speaking with the media.

Though senior government officials in charge of the issue like the Minister of Planning and Investment and the Minister of Finance have not spoken up, such a chorus of reaction is unprecedented.

According to a report by the Ministry of Finance, the northern province of Hai Duong faced VND2.034 trillion (147.5%) in infrastructure construction debt in 2011. How much of the amount the province has paid is unknown, so the provincial government should focus on paying debt, instead of spending heavily on a new building.

Such a warning is noteworthy, not only for Hai Duong Province but for many others as well.

According to a study by the World Bank (WB), actual spending on infrastructure construction in many provinces is often 50% higher than original estimates, far above the allowable percentage of no higher than 5%.

Debt in infrastructure construction projects in provinces, according to the Ministry of Planning and Investment, had amounted to VND43.358 trillion by the middle of last year. This debt belonged to 15,638 projects.

When the authorities of some cities and provinces such as Danang and Binh Duong decided to pour trillions of dong into their new administrative headquarters, they did not meet negative reactions.

Other projects worth trillions of dong like the national village for ethnic culture, Hanoi Museum and six-lane roads used to dry straw did not face outcries and when completed, they turned out to be a waste of money.

Moreover, the number of State-funded projects that have become useless is huge. Meanwhile, the Ministry of Transport is running short of money to develop essential infrastructure to fuel economic growth.

The warnings by officials and NA deputies are worthwhile as it is time to end hefty public spending as personal and corporate taxpayers are feeling the impact of the country’s protracted economic woes.    

SGT/VNN