Pressure is mounting on transport project developers and contractors to
fulfill the strict conditions of their 2012 capital disbursement targets.
Ministry of Transport (MoT)
figures show that by the end of September 2012 about a 4.653 trillion ($221
million) of state budget capital allocated to construction firms in early 2012
had yet to be disbursed.
If advanced capital portions for
2013 plan were included, developers and contractors reportedly would need to
disburse VND3.973 trillion ($189 million) investment capital each month in
2012’s fourth quarter.
Meanwhile, developers and
contractors were urged to finalise capital disbursement targets before the
deadline January 31, 2013.
Two factors are cited as
obstacles for transport sector’s project developers and contractors to meet
disbursement targets.
The first hindrance was late
capital allocations, of which supplemental capital amounts for 2013 plan were
only made clear by relevant state agencies in late September 2012.
Second, the MoT demanded
developers to direct capital into new items and not advance or pay for previous
items’ completed workload, which remains unpaid.
The requirement was intended to
help speed up construction of remaining items at half-done projects for entire
finalisation of projects.
Contractors, however, assumed
since most construction units face hardships in raising finance, getting a new
completed item for capital allotment would not be simple.
At this time, only the Transport
Department in northcentral Thanh Hoa and Ninh Binh provinces and Thang Long
Project Management Unit have reached the capital disbursement targets. Most
other localities and businesses would need great effort to meet the goals, according
to MoT’s Planning and Investment Department.
MoT’s Project Management Unit 85
(PMU 85) was the first unit dropping the disbursement target in a recent
meeting viewing disbursement results of MoT’s major transport projects as PMU
85’s deputy general director Nguyen Thanh Van had returned VND240 billion
($11.4 million) to authority ministry MoT.
This $11.4 million was part of
the sum PMU 85 got from the state for land compensation at the project on
building an access road linking Nhat Tan bridge north of Hanoi and Noi Bai
international airport.
This sum remains unused since
scores of residents in Hanoi’s Dong Anh district in the project’s affected area
refused the compensation although relevant land compensation records were
earlier ratified by local government.
To quench the thirst for capital
of businesses, the MoT required Vietnam Expressway Corporation (VEC) and Cuu
Long Corporation for Investment, Development and Project Management of
Transportation Infrastructure (Cuu Long CIPM)--two developers owing the most to
building contractors-- to finalise payments to contractors before the end of
November 2012.
VEC reportedly owes VND1.057
trillion ($50.3 million) and Cuu Long CIPM owes VND585 billion ($27.8 million)
to contractors.
Anh Minh | vir.com.vn
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