Thanks to flexibility in the expenditure control and payment according to new regulations, the Da Nang branch of the State Treasury of Viet Nam is contributing to speeding up the disbursement of public investment capital, thereby helping projects in the city receive capital in a timely manner.

The flexibility in the expenditure control and payment has signficantly contributed to speeding up the disbursement of public investment capital. In the photo: An entrance road to the Da Nang Hi-Tech Park. Photo: MAI QUE

The total public investment capital in Da Nang in 2022 is more than VND7,880 billion. Of this, domestic capital is VND7,333 billion.

The city sets a goal of disbursing 95% of the assigned capital plan. Specifically, the disbursement rate of public investment capital will reach 15% of the plan by April 30, 35% by late June, 60% by September 30, 90% by December 31, and 95% by January 31, 2023.

According to data released by the Da Nang branch of the State Treasury of Viet Nam, between January 1 and March 17, 2022, the amount of public investment capital disbursed by investors was VND308.65 billion.

In general, most of investors basically guarantee the disbursement schedules set by the city.

As an illustration, the Da Nang Management Board of Industrial and Civil Engineering Construction and Investment Projects has disbursed VND81 billion, representing 29% of the year’s public investment plan. Meanwhile, the Management Board of Basic Construction Projects in Hai Chau District has seen disbursed investment capital worth VND8 billion, or 25% of the plan for the full year.

Thanks to this, such key projects in the city as Hoa Lien 3, Hoa Lien 4 and Hoa Hiep 3 resettlement areas, a new urban area in the northwest of the city, and a multi-storey trade and services complex on the site of the present Chi Lang Stadium, have their on - scheduled progress ensured.

In an effort to speed up the disbursement of public investment capital, along with synchronous solutions implemented by departments, agencies and sectors, the city branch of the State Treasury of Viet Nam has just issued a regulation on management and payment of projects using public investment capital via the State Treasury system.

Director of the State Treasury of Da Nang Phan Quang Thong said that the treasury at all levels will flexibly will perform "payment before management" for each disbursement (including advance/payment of the complete volume) of a multi-payment contract until the disbursed amount reaches 80% of the contract value, then switch to the form of "management before payment" for the next disbursements until the contract value is fully paid.

In case the disbursed capital has not reached 80% of the contract value but the investor requests the final payment, the State Treasury shall implement “management before payment".

The "management before payment" of public investment capital is a form of payment control applicable to expenditures without contracts and a final payment of contracts or other expenditures under contracts with a payment value greater than 80% of the contract value until the end of the contract.

At the same time, the State Treasury of Da Nang also requires related units to implement the expenditure control process in integration with online public services at level 4 in a bid to shorten time taken for handling dossiers and documents.

As for recurrent expenditures, a value-based approach to risk management according to international practice will help to prevent arrears in payment.

Mr. Huynh Duc Quang, Chief Accountant of the Management Board of Da Nang Infrastructure Construction and Urban Development Projects, highlighted the flexibility and the efficiency of the State Treasury’s new expenditure control process, thereby creating favourable conditions for investors to quickly disburse capital while ensuring compliance with legal regulations.

Thanks to the flexibility in the process of expenditure control, as well as the online handling of most of the procedures, the time taken for handling documents and dossiers is shortened to only 1-2 days, instead of 3-7 working days as before.

“In addition, the State Treasury also actively supported us to complete the payment documents and procedures or make changes to mechanisms and policies related to the control of payment of investment capital, payment security, etc.” added Mr. Quang.

Director Thong informed that the State Treasury of Da Nang is now responsible for controlling and paying capital for projects. Therefore, the unit promptly grasps and handles problems arising in the disbursement of capital for each bidding package and project according to its competence.

Reporting by MAI QUE – Translating by M.DUNG