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More than 160,000 billion VND to make two “super-belt” routes: Where is the money?

The construction project of Belt 4 in the Capital region has a large total investment. To ensure a balance of resources for implementation in this period, the project is implemented in the form of public investment combined with PPP investment to reduce pressure on the state budget. According to Vice Chairman of the City People’s Committee. Hanoi Duong Duc Tuan, this is a very effective and reasonable investment model between the State and society.

To implement the national important project of the Capital Region, currently the total investment of the project is very large, 85,813 billion VND (more than 3.7 billion USD), divided into 3 component project groups. In which project group 1 is site clearance corresponding to 3 localities and 3 projects. Group 2 is the parallel urban road project under low for 3 localities 3 projects. Group 3 is a socialization project (only 1 project) under the public-private partnership (PPP) model and BOT contract undertaken by the investor. Investment capital of groups 1 and 2 shall be assumed by the central and local budgets; Project group 3, BOT investors undertake with a total investment of 29,410 billion VND, very large scale.

“We are aware of difficulties for both central and local budget capital sectors, which are now relatively complete balances of central medium-term public investment 2021-2025; for the Government, the balance is expected to be over 28,000 billion VND; for 3 localities, Hanoi, Hung Yen and Bac Ninh, the balance must also be over 28,000 billion VND, the structure is similar to the Central Government, in which Hanoi is the main, followed by Bac Ninh and Hung Yen “- Mr. Tuan said.

For the 3 localities implementing the parallel lower road project, it is likely that the capital must be up to 2026 and the investment progress is suitable with the process of forming the structure of the whole route.

For a PPP-BOT project with a scale of VND29,410 billion, it must be completed by 2025.

The biggest difficulty is ground clearance

The biggest difficulty of the national key project Ring 4 Capital Region, according to Vice Chairman of the City People’s Committee. Hanoi, is the work of site clearance. The specific mechanism created from the method of grouping project components to separate the project of site clearance.

Belt 3 in Ho Chi Minh City basically has no railway, but with Ring 4 of the Capital Region, it is the reserve ground clearance for the railway development corridor of 30 m in the total road width ranging from 90-135 m, the average is 125 m. So project group 1 is the key to open project 2 and 3; At the same time, this is the Government’s response to the localities. The following will also be agreed by the National Assembly that site clearance must be one step ahead, creating synchronization at the same time.

Experience shows that in terms of site clearance, even for the current Ring 4 of the Capital Region, the structure of the total investment in site clearance accounts for less than 25%. But for Ring 3, Ho Chi Minh City is likely to account for over 50%. Therefore, the slower the site clearance, the more dangerous it is. Certainly, the land clearance cannot be divided into multiple times because different periods of compensation and resettlement support will create an impossible effect. This is a lesson learned.

This difficulty is determined to be implemented according to the investment policy coming here in 2022 to 2024, investment preparation is from 2022 to 2023. Currently, the size of site clearance for Ring 4 is relatively small. large, 1,341 ha for all 3 provinces and cities; accounting for 19,000 billion VND of the total investment of 85,813 billion VND, less than 25%.

City only. Hanoi must have a plan for compensation and resettlement for about 14,647 households and resettlement for 2,203 households, and has prepared 9 resettlement sites with a size of about 36.3 hectares. When this difficulty is overcome, the next component projects such as the project of group 2 parallel urban roads will take place from 2022-2026; especially the PPP-BOT central project with 65% going on high and 35% going below to create conditions for urban development on both sides of the route will have to be completed in 2025.

Therefore, it was highly agreed to consider Ring 4 as an overall investment project on the basis of dividing it into 3 groups. For clearance has overcome difficulties. This is the decisive key to implementing this project.

Besides, it is still difficult that Hanoi implements the model of the State in cooperation with society, that is, public investment combines public private investment. This is to reduce the load on the central and local budgets. Experience shows that when implementing the North-South Expressway in phase 1, even phase 2, it is difficult to ensure the feasibility of BOT in the PPP model. In fact, many PPP-BOT projects have to be converted to public investment in response to each period of economic recovery and development.

But Hanoi, with the support of the Government, is determined to implement this project in the form of PPP. The Law on Public-Private Partnership (PPP) Investment has also shared the increase and decrease in revenue, the ability to collect closed fees of the typical belt by km. Or as Ring 4 also has its own attractiveness to ensure development. This is a condition to ensure feasibility but also a difficulty for Belt 4.

On the side of Ho Chi Minh City, Director of Ho Chi Minh City Department of Transport Tran Quang Lam said that the southern key economic region has a great role in socio-economic development, connecting international airports, seaports, and seaports. waterways, strengthen the transport connection of the provinces in the region from East to West, the highway system connects with your country. The construction of the Ring Road 3 system also helps to increase economic competitiveness.

With the role of “conductor”, from November 2021, the Government assigned Ho Chi Minh City the task of leading the project, the city has coordinated with provinces to study investment forms and have been approved by the Government. Agree on the implementation method according to public investment. On that basis, promptly remove difficulties and obstacles, assess capacity, increase the ability to allocate capital with 50% from the local…

The director of the Department said that up to now, Ho Chi Minh City and the provinces have committed to the Government to ensure the allocation of resources to implement the project. On the basis of reviewing the medium-term public investment plan, focusing on key investment, giving priority to Ring Road 3, localities will issue bonds, borrow government loans…

Regarding the Belt 3 project in Ho Chi Minh City, the total investment is 75,370 billion VND (more than 3.2 billion USD)expected disbursement in the period 2020-2025 is 81% or 61,000 billion VND.

In order to ensure disbursement, after having a specific mechanism for appointing contractors and flexing capital, it is necessary to prepare for site clearance. Firstly, in terms of compensation and resettlement, it is necessary to get involved early, review planning and plans early, measure and set up working groups, deploy steering committees, the whole political system to get involved, and mobilize people to mobilize. , propagate and deploy policies as quickly as possible, ensuring implementation on schedule. Second, the inspection and supervision of each stage and each stage is very important.

The success of the Belt 3 project is the compensation work, the second is the materials.

With Ho Chi Minh City, drawing on previous experience in implementing large projects, along with the support, direction and guidance of the Ministry of Transport, experience in implementing highways, Ho Chi Minh City and other provinces develop specific plans. , a coordination mechanism for careful preparation, preparation of quality materials, sufficient reserves, organization of inspection and supervision of each mine, organization of material testing on the construction site in consultation with experts, as well as the Ministry of Industry and Trade. Transport.

“A lot of solutions and ways of doing things must be innovative and synchronous, with specific mechanisms. If the National Assembly approves it, we believe it with the determination of localities, support from ministries and sectors, and guidance. Under the drastic direction of the Government and the National Assembly, the progress of the Belt 3 project has met expectations.The progress reported by localities will basically end in 2025, complete in 2026, final settlement in 2027. Therefore, the capital through 2 periods 2020-2025 is 81%, the next stage is 19%, meeting the effective use of capital, exactly as the committed schedule “- Mr. Lam affirmed.

‘Where’s the money in the first place’?

Answering the question “where is the money first” of Dr. Nguyen Si Dung about sourcing, balancing and allocating capital for belt projects, Deputy Director of the Investment Department (Ministry of Finance) Duong Ba Duc said, it is very fortunate that these two roads pass through 2 roads. key economic region. Only Long An province receives the central budget.

Resolution 29 of the National Assembly assigns a medium-term public investment plan with a total capital of 2,870 million dong, the central budget is 1.5 million billion dong, the local budget is 1.34 million billion dong. At the level of 10%, it has been allocated to ministries, branches and localities, in addition, there is a portion left unused, which has recently been focused on these two routes. Here, having committed to the central budget, the Government will report to the National Assembly to use this capital according to the policy.

Second, about the mechanism to integrate the central and local budgets, according to Mr. Duc, the National Assembly will provide the mechanism. Currently, Clause 9, Article 9 of the Budget Law clearly stipulates not to use the budget of one level to spend on another. In fact, the Budget Law we have promulgated for too long is no longer relevant. The Government has also assigned the Ministry of Finance to develop an innovation project, with the central budget leading and the local budget taking the initiative, and has proposed a number of contents that the Budget Law is no longer relevant.

In the process of implementation, the National Assembly has now also given a number of specific mechanisms to localities, for localities to make investment decisions, and capital is directly assigned to localities to implement the on-the-spot principle. .

In the process of local initiative, each item will have problems in the implementation organization. In fact, through the budget revenues of 7 localities, there is a very bright picture, by the end of April, all localities have basically achieved and surpassed. This shows consensus on the central and local levels.

Currently, there are local recommendations to increase the local balance, which is a good thing. The localities all have the determination and political will to increase the capital source for investment.

Resolution 29, Clause 7, Article 6 gave the mechanism for localities to assign the plan according to the actual budget, without affecting the overspending, so that at the end of the meeting, it will be added up. In Article 59 of the Budget Law, it is also possible to increase local budget revenue, arrange wage reform, and spend on investment. The National Assembly will create conditions for localities to actively increase local budgets.

Regarding the proposal for the Government to issue medium-term bonds, Deputy Director General Duong Ba Duc emphasized that the Law on Debt and Public Debt Management does not stipulate the Government to issue loans. Because of the pressure in the medium term to complete, our capital must be concentrated. Issuing local government bonds, if feasible, is likely to have Hanoi and Ho Chi Minh City.

“The collection is a bit difficult for other provinces. The plan of issuing general government bonds for localities is also reasonable. And this must still be included in the budget deficit” – Mr. Duc said.

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