Slow projects to lose funding

Money will be withdrawn from dawdling infrastructure projects to avoid poor investment, warns Transport Minister Ho Nghia Dung.

The minister also asked that capital for projects scheduled for completion in 2010 be given priority because of the difficulty in raising money.

Plans for raising money could be changed to suit the situation but money would be withdrawn from slow-moving projects and transferred to others, he said.

The minister attributed the shortcomings to tardy land clearance and inexperienced investors and bidders.

The ministry had ensured the decentralisation of construction projects for investors and this meant effective monitoring and heavy punishment for violations were necessary, he said.

Responsible Government agencies, together with provincial and municipal administrations, should strengthen their co-operation in the monitoring of infrastructure projects.

Dung said the disbursement would exceed the plan by the end of this year and several construction projects would have to wait for funds.

As a result, the ministry would focus on mobilising capital for such key projects as the Da Nang-Quang Ngai Highway; Lach Huyen Port; and the highway linking Dau Giay District of southern Dong Nai Province with Phan Thiet in central Binh Thuan Province during the last months of the year.

Report

The ministry’s planning and investment department reports that although disbursement for infrastructure is positive in the first seven months of the year, many are making slow progress.

The report says the ministry’s offices and subsidiaries have disbursed VND4.7 trillion (US$247.4 million) from the State budget for infrastructure projects in the first seven months of the year – 71 per cent of the yearly plan.

An additional VND8.8 trillion ($463 million) from Government bonds and VND4.1 trillion ($215.8 million) from non-State sources have also been disbursed.

These meet the yearly plan, says the report.

The ministry’s construction management and infrastructure quality department director, Tran Quoc Viet, said the deadline for some had been delayed for years and added that measures were needed to complete National Highway 34 in northern Cao Bang Province and National Highway 12 in northern mountainous Dien Bien Province.

Poor quality

The work done on others, such as National Highway 91B, had revealed their poor quality after they were put into service.

Deputy Transport Minister Ngo Thinh Duc said the inexperience of many investors in many localities was the major hindrance to progress.

Investors, especially in provinces, had not met their responsibilities and this had left many problems that caused delays, he said.

The deputy minister called for the tighter management of Build Operate Transfer, BOT, and decentralised projects.

Viet Nam Roads Directorate deputy director Nguyen Duc Thang agreed, saying the inability of many investors had harmed both project management and construction quality.

The inability to measure construction progress made macro management more difficult, he said.

Several new infrastructure projects were started in June. These included Gao Bridge on National Highway 50 and the improvement of National Highway 37 from Vinh Bao, Hai Phong, to Gia Loc, in Hai Duong Province.

Tags: Vietnam Infrastructure