Material prices increased, the Ministry of Transport requested to review the total project investment

The Ministry of Transport has just issued a written request to investors and project management boards to review total investment new construction projects in the medium-term investment plan for the period of 2021 – 2025.

The high prices of natural materials and materials in recent years have had a great impact on the investment plans of projects. (Illustrated photo – Photo: VNA)

According to the Ministry of Transport, in the medium-term public investment plan for the 2021-2025 period, the Ministry plans to allocate capital to start 64 new projects, including: 4 key national projects and 9 group projects. A and 51 projects of groups B and C.

Up to now, 48 projects have been authorized to decide on investment policies, including: 1 national important project (North-South expressway in the 2021 – 2025 period), 2 group A projects (Rach Mieu 2 bridge) and My An – Cao Lanh expressway) and 45 projects of groups B and C.

In which, 5 new projects have been decided to invest, including: Rach Mieu 2 bridge, National Highway 32C Phu Tho project, National Highway 7 Nghe An project, National Highway 12A Quang Binh project, and a new shipbuilding project. search and rescue operations offshore.

However, in the process of completing procedures to decide to invest in projects, some investors and project management boards reflected that the price of fuel and construction materials had skyrocketed recently, leading up to the total investment amount submitted for approval exceeds the total investment in the investment policy decision, which does not satisfy the conditions for the project investment decision.

Faced with this situation, the Ministry of Transport requested investors and project management boards to review and update the total investment of the investment project according to current prices.

“In case the total investment of the investment project exceeds the total investment approved in the decision on investment policies, the units propose solutions in the direction of suspending the investment policy of the projects. It is not too urgent to concentrate capital for implementation of urgent and key projects; to diverge and adjust the scope and scale of projects or integrate it with local budget capital, ensuring the central budget capital. The central government’s total investment in investment projects must not exceed the central budget’s share of the total investment in the investment policy decision”, the Ministry of Transport directed.

For projects that have not been decided on policy, the Ministry of Transport proposes to review and preliminary update the total investment in the investment policy step at the current price.

In case the estimated capital need for implementation in the period 2021 – 2025 is larger than the capital amount expected to be allocated in the medium-term plan of the project, the units shall review the proposal on scope and scale. projects, propose investment divergence plans or integrate with local budget sources when submitting investment policies for approval, ensuring that the central budget capital demand for project implementation in the period does not exceed the capital level. was expected to be allocated in the medium-term plan for the period of 2021 – 2025…

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