The disbursement of transport projects was VND33,387 billion (US$1.48 billion) including state budget and government bond funds by the end of December, accounting for 75.2 percent of the plan for 2016, the Ministry of Transport reported this morning.
According to the ministry, there are many reasons for the low disbursement progress. The major one comes from investors and project management boards who have not closely supervised total investment capital and construction costs of projects, causing established disbursement plans not close to reality.
They have been confused and short of the initiative in determining redundant funds while building projects.
After many times of review, projects expanding National Highway 1A and Ho Chi Minh Highway in the Central Highlands have kept reporting surplus capital raising difficulties for the ministry’s management.
Another reason for the low disbursement is the slow settlement of problems occurring during construction process such as compensation for cracks and depressions of citizen houses.
In addition, the final settlement of accounts has been late. So far, spending results of many projects using government bond capital in the phase of 2012-2015 have yet to be approved to create a basis to determine building costs, redundant or deficient expenses compared to the phase of capital arrangement.
In the phase of 2017-2020, the ministry has proposed the Prime Minister to allocate VND40,551 billion ($1.8 billion) from government bond source for North-South Express Railway project.
In addition, the ministry also suggests the PM to approve VND7 trillion ($310.17 million) from the source to repair and upgrade tunnels and bridges in the north south railway to increase train speed and traffic safety, VND22,449 billion ($995 million) to complete important projects which progress has been extended because of capital shortage.
The ministry said that it would instruct relevant agencies to solve problems from the start of implementing plans this year and in the phase of 2016-2020.
