HCMC disburses only 17 percent of public investment capital in first six months

The People's Committee of Ho Chi Minh City has recently reported the socio-economic situation of the city in the first six months of the year and put forward key tasks and solutions for the last six months of 2022. Based on the data provided by the HCMC State Treasury, the city's total public investment capital planned to disburse by the end of June 2022 is only VND5.94 trillion (US$255.75 million), reaching 17 percent of the total assigned capital plan.
HCMC disburses only 17 percent of public investment capital in first six months ảnh 1 Illustrative image. (Photo: SGGP)
The People's Committee of HCMC said that the disbursement rate of the Public Investment Plan in 2022 is not much compared to previous years due to many difficulties and obstacles, but mainly the impact of the Covid-19 pandemic in 2021. The restart of the construction of projects in the first months of 2022 experienced a certain delay after the time the city adopted measures to respond to the Covid-19 pandemic. In addition, input costs were unstable and tended to increase.

Besides the above objective reasons, the People's Committee of HCMC also raised some other subjective reasons affecting the disbursement progress of public investment capital, for example, difficulties related to site clearance; it is necessary to have time to carry out the project adjustment procedures on the basis of Resolution No.99/NQ-HDND dated October 19, 2021, of the People's Council of HCMC and Decision No.4354/QD-UBND dated December 28, 2021, on the medium-term capital plan 2021-2025 from the local budget of the People's Committee of HCMC.

To achieve the disbursement target of 95 percent upward in 2022, the People's Committee of HCMC will implement many solutions, in which promoting the implementation of the public investment plan is a key political task in 2022, so as to accelerate economic growth, achieving the highest socio-economic development goals in 2022 in the context that the Covid-19 pandemic still develops complicatedly.

The city also directed heads of departments, agencies, and investors to complete the disbursement of public investment capital of their agencies and units; urge contractors to strictly comply with the regulations on payment and finalization of the work value, and take full responsibility in front of the Chairman of the municipal People's Committee for the implementation and disbursement of the capital plan, immediately report to the People's Committee contractors who deploy slowly, fail to ensure capacity, quality, and construction progress, as well as fail to carry out payment and investment capital settlement procedures as prescribed.

By Duc Trung – Translated by Da Nguyet

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