Disbursements for traffic projects slow
HCMC – Capital disbursements for traffic infrastructure projects last year met 75.2% of the full-year target, according to a Ministry of Transport report.
The Government allocated a total of VND49.46 trillion (US$2.19 billion) from Government bond sales to fund infrastructure projects last year, including more than VND10 trillion for those projects carried forward from 2015.
According to the ministry, the slow pace of disbursement resulted from the weaknesses of investors and project management units. Disbursement plans were often inappropriate, leading to a waste of time, and cost overruns affected the tempo of construction work.
In addition, it took a long time to approve payments for many projects. Many projects funded by Government bond sales in the 2012-2015 period have not finalized payments for contractors.
As for this year, the Transport Ministry has been allocated total investment capital of VND133.41 trillion, with VND97.22 trillion sourced from foreign loans.
The ministry said the above shortcomings should be dealt with from the beginning of this year.
Slower-than-expected payments are expected at build-operate-transfer (BOT) projects. Many investors depend on advance investment capital to decide the length of time for toll fee collection, leading to longer-than-planned collections at many projects and thus causing public outcries.