Ministries urged to address slow public investment disbursement

According to Deputy Minister of Education and Training Pham Manh Hung, as of May 20, the ministry had disbursed nearly VND233 billion (US$10.2 million), equal to 17% of the yearly target.

Deputy Minister of Culture, Sports and Tourism Le Khanh Hai reported that in the first four months of this year, his ministry’s disbursement reached 15.1% of the yearly target. The capital belonging to the 2017 plan that was rescheduled to be disbursed in 2018 has yet been disbursed.

Meanwhile, a report of the Health Ministry showed in the first five months of this year, the ministry disbursed over VND233 billion, equivalent to only 4.43% of estimates.

The ministry’s disbursement of public investment was 81% of the yearly target in 2016, and the figure in 2017 was 54.7%.

Deputy Health Minister Pham Le Tuan attributed the slow disbursement tempo to the disbursement of the Bach Mai II Hospital project and Viet Duc Huu Nghi II Hospital project under the Project 125.

He said it was difficult for the ministry to carry out the Project 125 projects within 3 years as the fact shows that it takes 5-7 years to accomplish the construction of big, modern hospitals.  

Deputy PM Hue said the two projects are examples of weaknesses in public investment. 

According to him, the ministry’s change from Engineering Procurement and Construction (EPC) contract to small bidding packages is a reason for the slow progress of the project 125.

He requested ministries, particularly the three above-mentioned ministries, to figure out reasons, and define the responsibility of the heads of the ministries as well as individuals and organisations involved in the slow transfer and disbursement of public investment.