Gov’t demands "comprehensive assessment" of legal regulations on public investment
17:30 | 31/10/2019
VGP – The Government has demanded "comprehensive assessment" of the regulations of current Decrees on management of public investment, thereby submitting draft legal documents guiding the implementation of the 2019 Law on Public Investment.

The request is part of the Government’s solutions (Resolution No. 94/NQ-CP) to quicken disbursement of public investment which has dipped to record low this year.

Disbursement rate in the first nine months reached 45.17% of this year’s plan. Particularly, disbursement rate of foreign loans was much lower, only accounting for 18.8% compared to 27.28% of the same period last year.

Disbursement rate varies from ministry to ministry and locality to locality, in which many ministries and localities have extremely low rate, from 10%-15% in the first nine months, according to Prime Minister Nguyen Xuan Phuc.

Only seven ministries, agencies and 14 localities disbursed above 70% of capital, Phuc added.

He warned that slow disbursement could hinder economic growth, undermine trust of investors and donors, cause huge wastefulness, and increase investment costs.

The Government tasked the Ministry of Finance to strengthen supervision and update information about public investment projects/programs carried out by all ministries, agencies and localities in 2019.

The Ministry was assigned to report to the Prime Minister about the implementation of the Law on Public Debt Management and legal documents guiding the implementation of the Law in the fourth quarter this year.

The Ministry will also be responsible for proposing amendments to Decree No. 97/2018/ND-CP on the on-lending of the Government’s ODA and foreign concessional loans (to ministries and localities).

Meanwhile, the Ministry of Construction was assigned to review and further simplify procedures on verification, design approval, grant of construction permits.

Monthly report on disbursement progress required

Also under Resolution No. 94, the Government tasked the Ministry of Finance to submit monthly report on progress of public investment capital disbursement (before the 25th of each month). Information on disbursement progress shall be made public via mass media.

For projects using ODA and foreign concessional loans, since October, the Ministry of Finance shall have to make public the name of three ministries and ten localities with the lowest disbursement rates.

The Government also tasked authorities to strengthen inspection of the implementation of public investment plans to ensure effectiveness of capital and clarify responsibility of organizations and individuals for obstructing disbursement./.

By Huong Giang

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