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Ho Chi Minh City
Tuesday, May 18, 2021

HCMC’s public capital disbursement remains low

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HCMC – The HCMC State Treasury disburses VND450 billion in public capital per week on average, while the city’s weekly disbursement target is VND900 billion, attributable to obstacles related to site clearance compensation and compensation rates, according to leaders of the city’s districts.

The rate of public fund disbursement in the city remained low, at below 50%, while its targeted disbursement rate is at 95% by the end of 2020, it was announced at a meeting on public capital disbursement held on August 26.

As such, from now until late 2020, the city will have to double its public capital disbursement to fulfill its 2020 target, said Nguyen Hoang Hai, deputy head of the municipal treasury.

Citing the pace of disbursement in District 9 as an example, Tran Van Bay, chairman of the district, said that it stands at some 45.4% of its budget. The district has 38 projects facing bottlenecks related to land withdrawal and site clearance, he added.

Bay proposed setting compensation and resettlement price levels concurrently to get rid of these bottlenecks.

Facing the same fate, the public capital disbursement pace in District 2 was slow due to compensation and site clearance hindrances. Some 32 public investment projects worth a combined VND150 billion are being developed in District 2, but over VND84 billion has yet to be disbursed for these projects.

Meanwhile, the city’s Urban Civil Works Construction Investment Management Authority (UCCI) has proposed returning VND900 billion in public funds earmarked for site clearance at some projects due to unresolved problems.

However, HCMC Vice Chairman Vo Van Hoan disagreed with the proposal, suggesting that UCCI adjust and use the funding for other projects.

HCMC Chairman Nguyen Thanh Phong said that the management capacity of investors remains poor, leading to the slow public capital disbursement. Capital allocation must be considered carefully to avoid the funding of unfeasible projects, affecting public investment, he said.

To reach its target for public capital disbursement at 95% this year, the city will continue to adopt effective solutions to remove these obstacles, including regularly checking the process of projects, holding meetings to discuss solutions over disbursement, closely managing fund allocation and transferring capital from projects with low disbursement rates to those with high rates.

By Le Anh

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