HCMC to tighten control on project technology

In a meeting with municipal agencies on October 26 morning, HCMC Vice Chairman Tran Vinh Tuyen requested the Department of Planning and Investment to review the efficiency of those projects in the form of public-private partnership across the city.

He affirmed the city next year would embark on its seven breakthrough programs for 2016-2020 since there was now only three years left.

The Department of Planning and Investment needs to reevaluate capital sources and make proper adjustments to the use of annual budget allocations, so that each dong spent could help attract 15 dong of participatory development (versus the current ratio of 1:14).

The seven breakthrough programs for 2016-2020 may cost up to US$43 billion, as per the preliminary calculations of HCMC Finance and Investment Company. Yet, the city’s State budget can only cover 60%, said the planning department.

Recently, the city has proposed that the central Government allow the city to retain 21% of its budget revenues, instead of the current 23%, as central agencies are weighing a lower proportion of 18% and even if the proposal is approved, the city finds it difficult to balance its budget.

In this situation, Vo Van Hoan, chief of the HCMC government office, suggested the projects within the seven breakthrough programs should be reconsidered and some of them should be assigned to private investors.

“My point is to minimize budget spending on investment and boost participatory development one way or another. The current context requires a more aggressive call for private investment,” Hoan said.

“I strongly recommend the city choose a couple of schools, hospitals or educational institutions for pilot participatory development, going gradually from a low to a high level during the popularization (BOT, BT and flotation).”

Phan Thi Thang, director of the HCMC Department of Finance, said the municipal departments should consider funding sources for the seven breakthrough programs more carefully. Thang proposed a list of essential traffic and anti-flooding projects be soon published not only for the breakthrough programs in the city but also for the entire region.

The capital structure should be accurately calculated, she said, adding many units had sought to draw a line between State budget funds and BT and ODA ones although the State eventually had to compensate them in land, which is essentially State money.

The 10th Party Congress of HCMC has passed seven breakthrough programs for 2015-2020: human resource quality improvement; administrative reform; improvement of growth quality and competitiveness; traffic congestion and accident reduction; anti-flood and response to climate change and rising sea levels; environmental pollution reduction; and urban refurbishment and development.