|A stretch of new road passes through Dan Phuong district in the outskirts of the capital. Ha Noi's People's Committee has ordered local departments to review budgets and prioritise key projects. — VNA/VNS Photo Dinh Hue
HA NOI (VNS)— The Director of Ha Noi's Finance Department, Nguyen Doan Toan, has said the city is facing difficulties funding its infrastructure development projects.
Reviewing infrastructure development in the first nine months of this year, Toan said that until now, the city's budget only accounted for around 54 per cent of planned projects, creating a high probability of funding deficits.
Many projects fell short of funding, including 122 resettlement projects in need of VND26 trillion (US$1.2 billion) with only VND2 trillion ($95 million) available to fund the projects annually, he said, adding that this caused long delays in projects.
The director of the city's Planning and Investment Department, Ngo Van Quy, said that this year, the city lacked VND5.3 trillion ($251.75 million) for infrastructure development.
According to the department, the city needed nearly VND25 trillion ($1.18 billion) to develop its infrastructure projects this year, whilst as of last June, the city owed around VND1.98 trillion ($94 million) in construction fees.
In the first nine months of this year, the city disbursed over VND11 trillion ($522.5 million) for infrastructure projects, accounting for 58 per cent of planned estimates.
In an effort to raise money for infrastructure development, the city issued VND2 trillion in bonds for projects.
The city also moved to halt around 120 projects worth more than VND30 trillion ($1.42 billion) and withdrew a reserved sum of VND160 billion ($7.6 million) from nine planned projects who were behind schedule.
The municipal People's Committee vice chairman, Nguyen Van Suu,said that funding disbursement for infrastructure projects in the city during the past nine months was 62.9 per cent, 3.5 per cent higher than that of the same period last year, but still lower than the national average rate of 71 per cent.
He asked districts and departments to review their budgets and triage projects to adjust investment plans to fund key projects.
"Authorities and relevant agencies need to work to find proper mechanisms for land clearance and incentives to attract different economic sectors join in infrastructure projects," he said. — VNS