Friday, August 14 2020

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Long An speeds up disbursement of public funds for infrastructure projects

Update: July, 08/2020 - 16:23

 

Kizuna Industrial Park in Long An Province. The province is calling for funds from the private sector and more public-private partnerships to build infrastructure in the area.

LONG AN — The Mekong Delta province of Long An is speeding up disbursement of public funds to ensure the construction progress of infrastructure projects.  

Trần Văn Cần, chairman of the provincial People's Committee, said the total public investment capital disbursed for projects in the first six months was about VNĐ2.6 trillion (US$112 million), or 41.7 per cent of the plan.

The province has faced difficulties in the disbursement of public funds for projects. Its budget is limited but the investment need is huge, which has led to a shortage of capital.

The province has called for more funds from the private sector and more public-private partnerships to invest in infrastructure projects.

In the first quarter, the province issued investment licences to 26 projects with registered capital of $105.7 million. Eleven projects increased investment capital of additional $8.95 million.

The province has invested more in traffic infrastructure that links districts with other provinces in the Mekong Delta region. It has also developed industrial clusters and parks to attract foreign investors. Many of these will be put into use by the end of the year.

Eighty per cent of the space in the existing industrial parks in the province is full. The parks have attracted 1,059 FDI projects from 40 countries with registered capital of $6.5 billion. Of these, 585 projects are operating. 

The province is trying to resolve problems related to compensation and ground clearance, which have been barriers to attract investors.

Many residents affected by infrastructure projects have not agreed to the compensation prices. In addition, legal policies on compensation and assistance for resettlement have not been amended in time, so residents' benefits have not been ensured. 

From March 2019 to April this year, nearly 765 hectares of land were withdrawn, mostly in Cần Giuộc, Bến Lức, Đức Hòa and others.

Several main projects such as the belt road in Tân An city and industrial clusters have faced difficulties in ground clearance and compensation for many years. The COVID-19 pandemic has also affected construction progress.

The province plans to reduce some budget expenditures and increase the proportion of investment for development.

According to the People’s Committee, the total budget collection in the year’s first quarter was VNĐ4.6 trillion, 95 per cent of the figure of the same period last year. Total budget expenditures were about VNĐ4 trillion. Of the amount, VNĐ2.2 trillion was for infrastructure development purposes. VNS

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