The Government is to speed up the disbursement rate of public investment, according to a dispatch signed by Prime Minister Pham Minh Chinh.

The dispatch says the Government is looking at a disbursement rate of at least 95 per cent by year-end.

As of July 31, the disbursement rate of public investment has only been recorded at 36.71 per cent of the annual target, a decrease of 3.96 per cent compared to the same period last year.

The government leader has ordered ministries, sectors and localities to step up efforts in public investment disbursement, to review the allocation of public investment capital to ensure that the capital is injected into feasible projects, and to impose strict fines on investors, project management boards, individuals and organisations deliberately hindering the progress of capital allocation and implementation.

He stressed the slow disbursement rate of public investment is not only a waste of resources but a hindrance to economic development and causes unnecessary delays to the implementation of the State's financial and monetary policies.

Therefore, the PM has ordered ministries, central government agencies and local government bodies to prioritise the disbursement of public investment and to improve accountability of project managers and government leaders.

The PM wants measures in place to hold project managers and investors accountable for sluggish progression of projects using public investment sources. Those who were found incompetent or corrupt must be replaced and face severe penalties.

He has ordered a number of taskforces to be formed to oversee the disbursement of public investment in cities and provinces across the country. The taskforces are to work closely with local governments to identify issues and difficulties in rolling out the disbursement, especially for key projects.

The PM has asked ministers and local government leaders whose offices have shown a disbursement rate of public investment under 25 per cent, excluding those who have been put under social distancing due to the virus outbreak, to take personal responsibility and to present the central government with solutions to address the issue in a timely manner.

The Ministry of Planning and Investment has been told to divert public investment funds from those who fail to reach a disbursement rate of 60 per cent by the end of September. The diverted funds may then be allocated to other projects or localities. The ministry is also to come up with measures to address bottlenecks and complications in the disbursement of official development assistance (ODA) funds and preferential loans from foreign sponsors.

The Ministry of Finance has been told to coordinate with other ministries and agencies to remove obstacles relevant to negotiations, signing of loan agreements, withdrawal of loans and to publicise disbursement rate of public investment of all ministries, governmental agencies and localities. — VNS