100 HCMC public projects receive zero funds

Another 12 projects had a disbursement ratio of below 10 percent, Le Truong Hai Hieu, head of the economic-budget committee of the HCMC People’s Council, said at a forum Thursday.

Disbursement for all public projects in Vietnam’s biggest city was 26 percent, 5 percentage points lower than the national average, he said.

This was far from the city’s target to disburse 95 percent of funds this year, he added.

Some of the projects that have seen zero disbursement are the HCMC Children Hospital with a public investment of VND1 trillion ($42.74 million); a VND277 billion medical infrastructure complex in Binh Chanh District; and the VND350 billion HCMC Exhibition Center.

Some road and sanitation projects have seen disbursement of less than 10 percent.

One of the reasons for very low public spending is a delay in the valuation of land price for compensation, said Tran Van Bay, deputy director of the city’s Department of Natural Resources and Environment.

“Land valuations do not pay much, but companies that do it have to bear great responsibilities, therefore officials struggle to find valuation companies,” he said.

Often there is a gap between valuation prices and what local residents demand, he said, adding that many residents do not want to live in relocated apartments, preferring independent houses.

HCMC Chairman Phan Van Mai has ordered concerned departments to identify solutions to increase public spending from now until the end of the year.