VietNamNet Bridge – Thousands of public investment projects had proceeded at a slow pace, causing financial waste and violating quality management, according to a report reviewing projects in 2017 by the Ministry of Planning and Investment.

The Cat Linh-Ha Dong Railway was one of the public projects highlighted for its slow progress. — Photo tienphong.vn

The ministry’s figures showed that in 2017, there were 1,609 public projects which were behind in schedule, 850 projects causing financial losses and 225 projects violating investment rules, and 22 projects violating quality management regulations.

The ministry halted 300 projects for their violations.

The investors stated the main reasons for the delays were slow capital allocation and ground clearance.

Nearly 150 projects were progressing slowly due to the weak capability of investors, contractors and project management boards, the report said.

Explaining the situation, economist Ngo Tri Long said that measures to increase public investment so far had not been effective.

“Large investment but loss-making public projects mean the enforcement of the Law on Public Investment was not effective,” said Long.

“The Government should impose strict sanctions to stop the situation,” he added.

According to the economist, for projects causing losses, it was necessary to investigate the possibility of corruption as well as define responsibilities for individuals or entities.

Additionally, the ministry reviewed public-private partnership (PPP) projects.

The ministry noted some shortcomings including a legal framework which was not suitable and hindered foreign investment.

The total investment of PPP projects in 2017 reached more than VND25.8 trillion (US$1.1 billion), of which over VND20.4 trillion was loaned from commercial banks.

This demonstrates latent risks for the bank system, the ministry said.

Source: VNS