Quang Tri facilitates public investment

In 2024, under the leadership of the Provincial Party Committee and the oversight of the Provincial People’s Council, along with the timely direction of the Provincial People’s Committee, public investment capital disbursement in the province showed positive progress, outperforming both the same period in 2023 and the national average of 52.29%.

In 2024, under the leadership of the Provincial Party Committee, the monitoring support of the Provincial People’s Council, and the decisive, coordinated, and timely direction of the Provincial People’s Committee, along with the efforts and determination of various levels and sectors, the public investment capital disbursement in the province has made significant improvements. The disbursement has been better than the same period in 2023 and higher than the national average of 52.29%.

According to the medium-term public investment plan for the 2021-2025 period, the province allocated a detailed public investment plan for 2024 with a total capital of approximately USD 105.5 million, specifically, local budget funding of USD 55.5 million and central budget funding of USD 35 million. As of October 31, 2024, the disbursement of public investment capital for 2024 reached approximately USD 59.2 million, fulfilling 57.3% of the plan set by the Prime Minister and the Provincial People’s Council, and 61.2% of the actual implementation plan.

Of this, the local budget disbursed USD 30.4 million, reaching 54.9% of the plan; the central budget disbursed USD 21.2 million, reaching 60% of the plan; the national target program disbursed USD 9.2 million, reaching 59.5% of the plan; the poverty reduction program disbursed USD 2.6 million, reaching 66.3% of the plan; and the new rural development program disbursed USD 2.8 million, reaching 67.8% of the plan. Six units and localities disbursed more than 80% of their plans, 18 units and localities disbursed 40% to 80%, 11 units and localities disbursed less than 40%, and two units did not disburse any capital.

Although the Provincial People’s Committee allocated the 2024 investment capital plan to units and localities at the beginning of the year, the 2023 Law on Bidding, effective from January 1, 2024, and the delayed issuance of related decrees and guidelines slowed the process of approving contractor selection plans, which significantly affected the progress of project implementation.

The public investment plan from revenue sources in 2024 is USD 35.8 million, accounting for 36% of the province’s total plan. Early in the year, there were signs of recovery in revenue, especially from land use rights auctions, but slow payments into the state budget resulted in many projects lacking the necessary capital to start and implement, impacting the overall disbursement rate. The central budget allocated to projects with foreign funding only met 54.5% of the local proposal, affecting the implementation progress and preventing the disbursement of matching funds.

The work of compensation, land clearance, building resettlement areas, relocating technical infrastructure, determining land origins, setting land prices, approving resettlement policy frameworks, and finalizing land pricing procedures encountered many obstacles. Additionally, disagreements from residents on compensation and resettlement plans became “bottlenecks” that directly impacted the progress of many projects, including several key projects, ODA projects, and large-scale capital projects. Some contractors faced difficulties, had limited capacity, and failed to focus enough resources on the projects, causing delays and affecting disbursement for some constructions.

Many units have sought appropriate solutions to resolve these issues in public investment capital disbursement. Several investors have firmly terminated contracts with contractors who were behind schedule. An example is the implementation of the preservation and restoration project for the Memorial of General Secretary Le Duan in Trieu Phong District, with a total investment of VND 45 billion (USD 1.9 million).

The contract signed in April 2022 between the Project Management Unit and Duc Phat Company covered areas like exhibition halls, memorial houses, construction shelters, stone-paved yards, and installing building equipment, with a capital of USD 810,000. The construction was expected to take 720 days and be completed by April 2024. After 47% of the value was disbursed, the contractor fell behind schedule and did not meet the conditions to continue. In May 2024, the Project Management Unit terminated the contract and initiated a second bidding process, selecting Construction Investment Joint Stock Company No. 8 to continue the work.

Starting construction in June 2024, with close supervision from the investor, nearly 90% of the project has been completed, aiming to finish before April 7, 2025, to commemorate the 118th anniversary of General Secretary Le Duan’s birth.

Nguyen Thanh Binh, Director of the Provincial Project Management Unit, stated: "One of the difficulties in public investment capital disbursement and project implementation is not only fluctuating material prices, challenges related to land filling, and land clearance work but also the extended time needed for procedures. Once completed, only 3-4 months are left for actual construction. In response to these challenges, we’ve urged contractors to increase work hours and adjust schedules to meet the required deadlines."

Truong Chi Trung, Director of the Department of Planning and Investment, added: "To successfully achieve the 2024 public investment plan, we recommend that investors review the disbursement plans for each project, encourage contractors to take advantage of favorable weather for construction, and expedite inspections and disbursement as soon as work is completed. Special attention should be given to projects that are at the end of their funding cycle. For underperforming contractors, immediate action should be taken to replace them."

Since 2025 marks the final year of the 2021-2025 medium-term plan, it is essential to prioritize the allocation of state budget funds for projects expected to be completed within the medium-term period and for preparing new projects. In implementing the 2025 public investment plan, the province aims to focus on projects that have completed investment procedures, prioritize urgent and critical projects, and ensure that preparation work for projects is carried out efficiently to enhance their feasibility and implementation readiness. Furthermore, it is crucial to improve the quality of planning, investment preparation, bidding, contractor selection, and ensure that contractors with sufficient capacity are chosen to meet project deadlines.

At the beginning of December, the People’s Committee of Quang Tri Province issued Decision No. 2866/QD-UBND to establish a task force to support investors in the implementation of the Triệu Phú multi-industry industrial park infrastructure development and business project.

The task force is led by Mr. Pham Ngoc Minh, Head of the Quang Tri Economic Zone Management Board, as the team leader; Mr. Vu Thanh Cong, Vice Chairman of the Triệu Phong District People’s Committee, as the deputy team leader; and includes members representing relevant departments, agencies, and the investor.

The task force’s responsibilities include guiding and assisting the investor with the necessary procedures to implement the project, such as obtaining investment registration certificates, planning approvals, construction permits, fire safety approvals, land clearance and resettlement, land use change, forest use conversion, wood extraction from forests, removing the project from the national mineral reserve area, and other related legal procedures. The task force will also work directly with relevant departments, local authorities, and organizations or individuals to provide information and materials to support its work.

The task force is tasked with representing the departments, agencies, and local authorities to directly address or advise on handling tasks according to their authority.

It is also responsible for researching and proposing solutions to resolve issues or coordinating with related departments, agencies, and local authorities to timely address difficulties encountered by investors during project implementation, or to recommend solutions to higher authorities when issues exceed the task force’s authority.

Thanh Truc - Ngoc Mai