Da Nang eyes for highest disbursement rate of public investment capital for rest of 2021

Da Nang received VND 6,935.11 billion worth of public investment capital from the national budget for this year. Due to the negative impacts of COVID-19, the already-allocated capital has been adjusted down to more than VND8,000 billion. As of October 31, over VND4,607 billion in public investment capital was disbursed, meeting only 66.4% of the 2021 target set by the national government and reaching 56% of the full-year plan assigned by the Da Nang administration.

The progress of the under-construction traffic infrastructure improvement project at the western end of the Tran Thi Ly Bridge is kept on track. Photo: THANH LAN

According to a recent report released by the Da Nang Department of Planning and Investment, with regard to the negative effects on the disbursement rate of public investment capital in 2021, unfavorable weather conditions with storms and heavy prolonged rains and the complicated development of the COVID-19 wave have driven some major construction works in the city into temporary halt.

At the same time, as triggered by the coronavirus surge, the city’s budget revenue suffered from an unexpected decrease, which adversely affected investment spending for 2021, especially the last months of the year.

In particular, major obstacles in site clearance has delayed the disbursement progress and implementation of projects.

In fact, the disbursement of central budget investment capital in 2021 has faced many difficulties and logged a slow rate as compared to previous years mainly because the capital for some inter-regional projects could not be disbursed.

As observed, the progress of some large-scale projects such as some sections of the under-construction North-West axis No.1 route, DT601 Road, the traffic infrastructure improvement project at the western end of the Tran Thi Ly Bridge, the Western Ring Road and riverside Tuyen Son – Tuy Loan route is still behind schedule for the time being as a result of many difficulties in site clearance which has dubbed as an “eternal bottleneck” delaying construction.

A solution needs to be identified to speed up implementation and disbursement of the 2021 public investment capital plan in the city.

A scene of the construction site of the Western Ring Road project (the section from National Highway 14B to Ho Chi Minh Road) Photo: THANH LAN

According to Mr. Nguyen Minh Huy, Director of Da Nang Traffic Construction Investment Project Management Board, in order to speed up the progress of the traffic infrastructure improvement project at the western end of the Tran Thi Ly Bridge, since July 2021, his unit has requested contractors to organise three work shifts a day to keep the project on track.

The completion deadline for a road tunnel there will be December 31, 2021, whilst the whole project must be open to traffic not later than February 28, 2022.

According to the Director of the Da Nang Department of Planning and Investment Tran Thi Thanh Tam, by the end of the fiscal year, the city aims to see the total public investment capital disbursement in the city reach 95% of the 2021 target set by the national government and reach the highest possible rate as compared to the plan assigned by the municipal People’s Council.

The Department will continue to put forward solutions to speed up the disbursement and improve the efficiency of the capital.

Focus will be on handling problems arising during project implementation in terms of site clearance, bidding, contracts and equipment imports so as to promote the disbursement rate, as well as adjust the disbursement plans for other internal projects with good disbursement progress but facing a shortage of capital.

Source: Da Nang Today