13.09.2022, 10:52

More time and budget needed for Hanoi urban railway project

The Economic and Budget Commission under the People’s Council of Hanoi has agreed to supplement VNĐ30 trillion (US$1.28 billion) of the city’s mobilized capital to implement key transport projects.


The Economic and Budget Commission under the People’s Council of Hanoi has agreed to supplement VNĐ30 trillion (US$1.28 billion) of the city’s mobilized capital to implement key transport projects.

The decision is part of a wider adjustment to speed up the disbursement progress and meet the actual capital needs of the city, according to the People’s Council of Hanoi.

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In a meeting on Monday, the municipal People’s Council reviewed three reports on the adjustment of the public investment plan in 2022, an update of the five-year medium-term public investment plan for 2021-2025, and the public investment plan for 2023, Vietnam News Agency reported.

After review, the council’s Economic and Budget Commission realized the need to adjust the public investment plan to push up the city’s disbursement progress and capital requirements and agreed with the proposals of the People’s Committee.

The commission requested the city People’s Committee clarify the reasons for the low disbursement progress of public investment capital that has only reached 27.1 per cent, compared to 35.49 per cent, by the end of August this year.​​

The Economic and Budget Commission agreed with the assessment of the City People’s Committee and the need to adjust, update and supplement the medium-term public investment plan to effectively use capital sources and promptly respond to important projects serving the socio-economic development goals of the city.

To ensure compliance with regulations and principles, the commission asked the People’s Committee to report and further clarify the projects that would be updated and adjusted under the medium-term public investment plan.

At present, the progress of approving investment projects is still very slow. For example, there were 137 projects to which the People’s Council agreed, but the People’s Committee has only approved 33 projects, accounting for 24 per cent.

In addition, there were 169 projects with total investment capital of VNĐ25.3 trillion ($1 billion) that used the medium-term capital budget and have not yet completed the preparation for investment.

According to the commission, almost half of the medium-term plan has passed. However, only about one-third of the projects have been approved, so the risk of falling behind schedule is real.

The commission asked the People’s Committee to review, complete procedures and quickly deploy projects to ensure the schedule, especially for key projects in the city.

The People’s Committee was asked to review further and update the plan to use the additional capital following the capital needs of each project, especially large-scale key projects such as the pilot urban railway project of the Nhổn-Ha Noi Railway Station section.

The committee must clarify the list of ten key projects expected to use VNĐ16.2 trillion ($696 million) from the additional sources of the medium-term public investment plan.

Regarding the plan of public investment for 2023, the central government has not yet announced the capital source for the city. However, the People’s Committee has initially calculated next year’s total capital of VNĐ52.6 trillion ($2.24 billion), almost equal to this year’s amount.

The committee should also define the investment orientation and estimate the capital allocation for sectors and fields next year.

The year 2023 is the pivotal year for the implementation of the 5-year medium-term plan for 2021-25. Key projects and target programs have been ensured capital for implementation, according to Vietnam News Agency

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