Addressing the conference, PM Phuc said public investment plays a major role in socio-economic development, especially the building of important infrastructure facilities.However, the sluggish disbursement of public investment capital over the past nearly one decade has created a bottleneck in the economy, he noted.
He pointed out that Slow disbursement could hinder economic growth, undermine trust of investors and donors, cause huge wastefulness, and increase investment costs.
The PM proposed to clarify more the objective, subjective reasons of the slow disbursement; offer practical, specific, close and stronger solutions to make the disbursement in 2019 better, as well as draw experience for disbursement in 2020.
Reported by the Ministry of Finance, disbursement of public investment capital in the first nine months of 2019 met only 45.17 percent of the yearly target set by the National Assembly and 49.14 percent of the target set by the PM.There are 7 ministries, branches and 14 localities with disbursement rate of over 70%; in which, 4 ministries and 4 localities have disbursement rate of over 80%. However, There are 31 ministries and central agencies and 19 localities with the disbursement rates under 50 percent of their assigned figures. Among them, 17 ministries and agencies and one locality only met under 30 percent of the target.
According to the Ministry of Planning and Investment (MPI),the snail-pace disbursement partly affected by some institutional obstacles. It noted there remain much confusion in the implementation of the laws on land, construction, bidding and natural resources protection; site clearance is still time-consuming; and the preparation for projects using public investment capital remains problematic. Besides, the provision of counterpart funds for some projects did not meet schedule, subsequently affecting the disbursement of foreign capital.
In order to complete the 2019 public investment plan in the last months of the year, the Ministry of Planning and Investment proposes and submits to the Government for consideration and permission to NOT apply the regulations that the project must have an investment decision before October 31, NOT apply The regulation on saving 10% of total investment in projects using government bonds. At the same time, the Ministry will study and submit to the competent authority for permission to assign the 2020 plan in the direction of innovation, in accordance with the Law on Public Investment in 2019, to thoroughly learn from the situation of delayed and repeated delivery as before. .
In addition, it is necessary to identify specific tasks of ministries, central and local governments related disbursement of public investment capital, set the responsibility to the heads of the ministries, branches and localities for the disbursement results. At the same time, the Ministry also petitioned resolutely not to disburse the planned capital in 2020 for projects using State budget capital (domestic capital) until November 30, 2019 except for projects on equipment procurement.