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Review large investment plans, MPI says

Update: February, 03/2015 - 08:51
Construction underway of the Tan Vu -Lach Huyen Road in Hai Phong City. The road will link up with the Ha Noi - Hai Phong Highway, highways No. 5 and 18, as well as the Noi Bai - Ha Long Highway. — VNA/VNS Photo Huy Hung

HA NOI (VNS) — Most ministries and localities have submitted huge investment budgets that do not correspond to the State's limited resources, and these need to be reviewed, Planning and Investment (MPI) Minister Bui Quang Vinh said yesterday.

Addressing a seminar held in Ha Noi to guide agencies and localities on implementing the national mid-term public investment plan (2016-2020), he said obstacles that come up will have to be overcome through better co-ordination between all stakeholders.

He said the plan's implementation should abide by the revised Law on Public Investment, which took effect on January 1 this year.

The law is expected to provide a comprehensive legal framework for restructuring the public investment process, he said, adding that a Decree dealing with this will be submitted to the Government for approval by March this year.

The ministry will also present specific data on investment demand and report on total investment – sourced from the State Budget as well as Official Development Assistance (ODA) - needed for the next five years, he said.

Top priority will be given to capital disbursement for public-private partnership (PPP) projects followed by ODA projects, he said. Repaying capital construction debts will come next followed by funding for unfinished projects. The ministry will also consider reviewing new projects, Vinh said.

Some provincial representatives pointed out that the MPI was yet to notify them about budget allocations from the centre as well as Government bond proceeds for the 2016-2020 period. This has delayed project implementation, they said.

Vinh responded that the preliminary perusals show that most ministries and localities have proposed huge investment budgets that should be reviewed and submitted to the Ministry before the end of this month for further consideration.

Regarding total investment capital for the next five-year plan, localities should review their budgets towards eliminating "sudden" increases in investment capital that have been seen in the last few years, he said.

He noted that capital disbursed from the State budget to ministries and localities as well as supplemental capital for national programmes has risen 10 per cent on average from a year ago.

Vinh acknowledged the need for proper regulation of public investment by the Ministry in order to ensure that capital is channeled into the right projects. This was needed for more efficient use of State Budget funds, he said.

Representatives from Yen Bai and Bac Giang said that provisions of the draft decree on public investment have been adapted to the current situation, easing many obstacles.

However, Vinh said it appears that due preparations have not been completed for both locally and centrally-funded projects.

He noted that for implementing the five-year plan, each locality will be asked to submit at least one to three large-scale projects to the ministry for consideration.

He assured that the ministry will take into consideration the problems raised by localities as well as the recommendations they have made, and include them in the draft decree on public investment. — VNS

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