Increasing capital as prolonged project

Hiep Hoa Bridge will be offloaded when a central road is completed.

Arising of capital

The projects that are assessed to be largely delayed compared to the requirements are mainly in the stage of compensation and site clearance. This delay will incur additional investment costs, of which the most noticeable part is the increase in capital, mainly land compensation due to the change in land prices. For example, the Cai riverside project, the central axis of Bien Hoa City increased by nearly VND 800 billion. Director of the Department of Planning and Investment of Ho Van Ha said that the investment level of two projects along Cai river and central trunk road in Bien Hoa city has increased mainly in compensation and site clearance. Investment capital for the above projects is taken from auction of land use right, enterprise reorganization assistance fund, and state budget.

Mr. Nguyen Thanh Dat, General Director of Nhon Trach 6A Investment Construction Industrial Zone Company Limited shared: “The company implements a number of projects in Dong Nai province which are in the process of completing the dossier, then proceeding to land inventory and compensation. However, with the new land price, the company will generate an additional capital for site clearance”. Also according to Mr. Dat, the investment capital for the projects will increase by hundreds of billion dong/project compared to the initial calculation, and the longer the project lasts, the more investment costs will increase.

According to the investors, the project's delay in site clearance not only affects the investment capital but also slows down the time to put the project into operation.

Focus on public investment projects 

In 2020, the total public investment capital of the province is nearly VND 13.87 trillion. Large projects such as Long Thanh International Airport, key projects of the province will be given priority for quick deployment.

According to Vice Chairman of the Provincial People's Committee Nguyen Quoc Hung, there is no shortage of public investment in project projects of the province in 2020. Therefore, since the beginning of the year, the province has urged investors to come up with solutions to disburse the capital already allocated to each project.

Chairman Cao Tien Dung asked: “Although departments and localities are focusing on the prevention of Covid-19, they must pay attention to the implementation of projects in the area aslo. Investors of works and projects must coordinate closely with departments and localities to accelerate the stages of dossier, design, bidding and compensation in order to disburse capital in accordance with the plan assigned by the People's Committee. Public investment projects include: roads, drainage systems, water supply systems, anti-landslides of rivers and streams, irrigation works, etc. These are all important projects, the investment in accordance with the schedule will contribute to the local socio-economic development, improve the lives of local people.

In the context of economic development facing difficulties caused by the Covid-19 epidemic, public investment is a solution to keep development.

Vi Quan