Speed up funding for transportation from the beginning of the year

The total capital plan for transportation construction assigned to Ministry of Transport (MOT) in 2024 is VND 56,666 billion. Although it is lower than in 2023, it still requires the industry to take decisive actions from the beginning of the year in order to fully disburse the funds.


Bustling on transportation projects

In late January 2024, on the construction site of the Diễn Châu – Bãi Vọt Phase I Highway component, contractors are mobilizing 101 construction activities, over 850 machinery and equipment, and nearly 2,000 labor forces throughout the construction highway route.

According to Mr. Nguyễn Quốc Việt, Director of the Project Enterprise of Phúc Thành Hưng Joint Stock Company, the current packages have reached an overall progress of nearly 65%, the bridges on the route are expected to be completed in April 2024 and are starting to lay the first layer of porous asphalt concrete pavement, expected to complete the final hot mix asphalt pavement by the end of April 2024 and ensure the target progress in May 2024…

Construction of Diễn Châu – Bãi Vọt Highway.

Similarly, despite unfavorable weather conditions, more than 1,800 workers operated around 900 pieces of machinery and equipment on the construction site of the Vân Phong – Nha Trang Phase II Highway, still diligently carrying out various construction items to continue increasing productivity. According to Mr. Trần Đình Tuyên, Deputy Director of Project Management Board 7 (Ministry of Transport), the project’s construction volume as of the end of January 2024 had reached about 35% of the contract value, exceeding about 3.5% compared to the plan. In 2024, the planned financial investment for the unit is over 6,000 billion dong, with 2 highway components of Chí Thạnh – Vân Phong totaling 2,316 billion dong, and Vân Phong – Nha Trang totaling 2,339 billion dong…

As one of the transportation projects’ project management boards with the highest disbursement results under the Ministry of Transport in 2023, with a disbursement rate of 98.7% (the total planned capital of over 9,850 billion dong), in 2024, the Thăng Long Project Management Board continues to be assigned over 4,427 billion dong. Along with other project management boards with high disbursement results, Project Management Board 6 has also been assigned a total capital of 8,685 billion dong…

To speed up the progress of implementation and disbursement of public investment capital for key transportation projects, national important projects, expressways, interregional roads, coastal roads, and national target programs; strive to achieve over 95% disbursement of the assigned plan in 2024, Minister of Transport Nguyễn Văn Thắng issued a document to the heads of the investors, Project Management Boards, and advisory agencies to enhance responsibility and resolutely perform the assigned tasks right from the beginning of the year, at the beginning of 2024.

Specifically, the investors, Project Management Boards assigned must allocate the budget according to the assigned schedule for each project; expedite the completion of payment procedures with the State Treasury when there is an acceptance volume; promptly record revenue and expenditure of disbursement funds and strictly handle individuals, officials who do not comply with the disbursement process, causing difficulties for the units in the payment procedures.

Transfer, replace weak contractors

Mr. Lưu Quang Thìn, Deputy Head of Investment and Planning Department (Ministry of Transport), said that to ensure the effectiveness of disbursement, the Department has advised the Ministry to require projects to develop detailed monthly and quarterly disbursement plans, establish a disbursement “path” to update reports as the basis for operation and assess the implementation results; at the same time, individualize the responsibilities of the entities in each process, strictly handle officials with corruptive behavior, causing difficulties in the payment process.

Through research, 2024 is a turning point to complete a series of expressway projects by 2025. Based on this foundation, the Ministry of Transport has closely coordinated with local authorities from the beginning of the year to thoroughly resolve difficulties in land clearance, complete procedures for granting material mining licenses… to ensure the construction progress.

Especially, the disbursement results of projects largely depend on the construction volume at the construction site, therefore, Minister Nguyễn Văn Thắng suggested that the investors, Project Management Boards regularly review and evaluate the results of the contractors’ performance; promptly transfer the construction volume of slow contractors, avoiding the situation of “jumping into the water when it reaches the feet”, only finding replacement contractors in the final stage of the project.

In addition, the Investment Management Department of Construction and the Vietnam Expressway Management Department have been requested by the Ministry of Transport to be responsible for promptly appraising and approving investment projects, bidding plans, designs, cost estimates, projects… when receiving files submitted by the investors, Project Management Boards, especially for projects using central budget funds.

Representatives of the Project Management Boards also added that to ensure disbursement progress, the projects will maintain flexible mechanisms in disbursement work, especially the mechanism of guaranteeing payments for reputable contractors…

In 2023, the disbursement plan of the transport sector reached nearly 92,186 billion dong, achieving 96.8% of the plan. In 2024, considering the group of investors, the allocated capital amounted to over 56,600 billion dong, mainly concentrated on investors/Project Management Boards, in which the North-South Expressway projects accounted for the majority of the allocated capital, with 34,512 billion dong, accounting for 60%.
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