Ministry of Transport increases public investment disbursement for 2025

Workers are building a section of the eastern North-South expressway. (Photo: VietnamPlus)

Nearly 26.9 trillion VND has not been absorbed yet

According to a report of the Department of Planning and Investment, the Ministry of Transport is expected to be assigned a total sum of 396,435 billion VND (15.95 billion USD) for the 2021-2025 period. Of which, 295,888 billion VND is medium-term public investment capital for the 2021-2025 period, 81,269 billion VND from the socio-economic recovery and development programme, and 19,278 billion VND from increased central budget revenue for the years of 2021, 2022 and 2023.

By the end of 2024, the Prime Minister has assigned 291,922 billion VND to the Ministry of Transport, so the remaining planned investment is 104,513 billion VND.

The Department of Planning and Investment held a meeting with investors, the Department of Construction Investment Management, and the Vietnam Expressway Authority to review the implementation of the 2024 plan and the needs in 2025. Based on the meeting, investors held that the ministry's needs about 77,624 billion VND out of the remaining sum of 104,513 billion VND, an increase of about 5,172 billion VND compared to the previous report.

"Thus, the capital plan for the 2021-2025 period will not fully utilize about 26,889 billion VND, including 14,511 billion VND of foreign capital and 12,378 billion VND of domestic capital," said a leader of the Department of Planning and Investment.

Through review, the Department of Planning and Investment found that some investors registered the 2025 planned needs for projects that must be completed in 2025 or will be transferred to the next phase but with lower than the allocated medium-term capital.

Projects using the increased central budget revenue in 2022 and 2023 must be fully disbursed in 2025. But investors registered lower than the expected allocated capital of about 6,875 billion VND for 7 out of 9 projects. These include the Cao Bo-Mai Son decreased by 400/1,200 billion VND, the route connecting Noi Bai-Lao Cai expressway with Tuyen Quang-Phu Tho expressway decreased by 406/1,098 billion VND. National Highway 24B Quang Ngai has decreased by 596/598 billion VND, while upgrading and expanding some bridges and tunnels on National Highway 1 decreased by 745/2,000 billion VND. The Cam Ly bridge decreased by 320/800 billion VND, and the La Son-Hoa Lien project decreased by 1,207/3,009 billion VND. Lastly, the Cam Lo-La Son project decreased by 3,202/7,000 billion VND.

Domestic capital projects must be completed by 2025 or transferred to the next phase, and will reduce the medium-term planned demand by about 4,899 billion VND for six projects. These include the Cho Moi-Bac Kan project, reduced by 1,793 billion VND, and the Dai Ngai bridge reduced by 1,600 billion VND. The Duong River Railway bridge has been reduced by 837 billion VND, and the Dau Giay-Tan Phu expressway was reduced by 446 billion VND. The Lo Te-Rach Soi was reduced by 118 billion VND, and the Cao Lanh-Lo Te project was reduced by 104 billion VND.

ODA-funded projects decreased by 10,466 billion VND, comprising 8,858 billion VND of foreign capital, and 1,608 billion VND of domestic capital. The reductions include nine projects, starting with the Tan Van-Nhon Trach project decreased by 1,964 billion VND, and the My An-Cao Lanh project decreased by 1,913 billion VND. The Hoa Duyet-Thanh Luyen railway decreased by 1,762 billion VND, while waterways and logistics in the southern region decreased by 1,717 billion VND. Traffic connections in the northern mountainous provinces decreased by 1,093 billion VND, and bridges on national highways phase 2 decreased by 644 billion VND. The Khe Net pass railway decreased by 608 billion VND, and bridges on national highways phase 1 decreased by 462 billion VND. Lastly the Ninh Cuong Bridge on National Highway 37B decreased by 302 billion VND.

Striving to disburse 100% of allocated capital in 2024

The Department of Planning and Investment requested investors to review the ability to disburse the 2024 budget based on the annual plan assigned by the Minister of Transport. This includes the expected adjustment and supplement plan to disburse 100% of the ministry's annual capital.

Due to the importance of disbursement in 2025, the Department of Planning and Investment asked investors to review the 2025 budget for sufficient capital to complete projects according to schedule. The North-South expressway projects should ensure sufficient funding for investment in smart traffic items, non-stop toll collection, vehicle load control, and subsequent completion in 2025.

Investors need to rectify the work of planning and managing plans, and closely coordinate with the Department of Planning and Investment in the work of developing investment capital plans.

In 2024, the Prime Minister assigned 59,275 billion VND in public investment capital to the Ministry of Transport.

In addition, the capital source was extended from the 2023 plan to 2024 by about 3,329 billion VND. The Government reported to the National Assembly Standing Committee to supplement 8,680 billion VND from the increased central budget revenue in 2023. The ministry proposed to supplement 3,300 billion VND for group B projects that are lacking capital, and to supplement about 1,240 billion VND from the increased central budget revenue in 2022 for projects that have completed investment procedures.

Thus, the total disbursement plan for 2024 of the Ministry of Transport is expected to be about 75,824 billion VND.

According to reports from investors, it is expected that in 2024, the Ministry of Transport will disburse about 74,680 billion VND, reaching 98.5% of the plan (4,428 billion VND of ODA capital and 70,252 billion VND of domestic capital). By the end of July 2024, the ministry had disbursed about 30,794 billion VND, reaching 49.2% of the assigned plan.

The Department of Planning and Investment assessed that the amount of capital to be disbursed in the last months of the year is still large (45,030 billion VND). Some projects are continuing to complete investment procedures. But they have run into problems in compensation and site clearance, infrastructure relocation, and conversion of forest use purposes. Also, construction material mines in some projects have not been completely resolved, and unfavorable weather conditions will pose challenges to the target of disbursing 100% of public investment capital in 2024.

The Department of Planning and Investment will monitor the disbursement and promptly report to the Minister of Transport to adjust to high-disbursement projects. The Department of Construction Investment Management and the Vietnam Expressway Authority will promptly handle the implementation process to speed up the disbursement of projects./.

VNA

Source: https://en.vietnamplus.vn/ministry-of-transport-increases-public-investment-disbursement-for-2025-post296546.vnp