Over 99 trillion dong worth of 16 projects are experiencing delays
At a meeting held on March 9th in Can Tho, Deputy Minister of Planning and Investment Tran Quoc Phuong presided over the third meeting of the Steering Committee for Sustainable Development Projects in the Mekong Delta in response to climate change (Mekong DPO).
According to Pham Hoang Mai, Head of Foreign Economic Affairs Department at the Ministry of Planning and Investment, in July 2023, the Government issued Resolution 108/NQ approving the mobilization of preferential foreign loans (ODA) for 16 projects under the Mekong DPO program. The total investment capital for these projects is over 99.133 trillion dong (with 30 trillion dong from domestic counterpart funds and the rest from ODA funds).
Mai stated that until now, the projects have been progressing slower than planned. This is due to the low quality of project proposal preparation by localities, which leads to numerous adjustments and delays. In addition, when the Ministry of Planning and Investment solicits opinions, the responses from relevant agencies are also slow. The Ministry of Finance has been slow in reporting the financial aspects of the projects to the Prime Minister. Some specific investment mechanisms for new road projects approved by the National Assembly have also affected the construction progress.
Deputy Minister Tran Quoc Phuong explained that the Government has issued resolutions to mobilize ODA funds for the 16 Mekong DPO projects, and the National Assembly has also approved specific mechanisms for some transportation projects, where localities serve as the investors (such as National Highway 61C, Cua Dai Bridge, and Co Chien 2 Bridge). These resolutions have cleared legal obstacles to prepare and approve the Mekong DPO projects.
However, Phuong admitted that the preparation and approval progress of the Mekong DPO projects are still behind schedule. Some projects are still seeking opinions or have not reached a consensus on design solutions, investment scale, and financial plans, making it insufficient to report to the Ministry of Planning and Investment for submission to the Prime Minister for approval. Moreover, the Ben Tre, Tra Vinh, and Tien Giang provinces have proposed additional adjustments to the Cua Dai and Co Chien 2 Bridge projects.
“The overall situation of the Mekong DPO projects is slow. These are projects that the Government wants to implement, localities desire to have, and donors agree to support. However, they are delayed, and I do not understand why. This is something that both myself and Mai find difficult to answer to Minister Nguyen Chi Dung and the Prime Minister. The Minister told me that these projects have been in the pipeline for 7 years without any progress,” said Phuong.
The leaders of the Ministry of Planning and Investment believe that the legal obstacles to the Mekong DPO projects are no longer present. However, the preparation of documents and procedures by localities is still inadequate, resulting in constant adjustments and significant changes from the initial plans, causing delays and missed opportunities.
“Project adjustments should be avoided unless absolutely necessary because every adjustment requires almost starting from scratch. It is not only costly in terms of money and time but also missed opportunities. It is very regrettable. Localities and investors need to reconsider,” added Phuong.
Deputy Minister Tran Quoc Phuong proposed that the Mekong Delta localities actively take more efforts to complete project procedures and documentation, proactively solve difficulties and obstacles, and promptly report to competent authorities any issues that exceed their authority to resolve. By doing so, the new projects can be approved, implemented, and effectively utilized in each locality and the entire region.