Name of recommendations: Recommendation on the grant of expenses for ground clearance compensation

Status: Has been incompletly responded

Recommended by units: The Vietnam Infrastructure Development and Financial Investment Joint Stock Company

Official letter: 0874/PTM - VP, dated: 2017-04-20

Recommended contents:

The Ha Noi - Hai Phong Highway Project (the project) is a national key transport project assigned by the Prime Minister to the Vietnam Development Bank, which is responsible for mobilizing investment capital and assigning the General Corporation Infrastructure and Financial Investment of Vietnam (VIDIFI) is the investor implementing the project in the form of BOT contract under the pilot mechanism in Decision No. 1621 / QĐ-TTg dated November 29, 2007 of the Prime Minister. For the site clearance, in order to speed up the progress of the project, VIDIFI has loaned funds from the Vietnam Development Bank to support the localities in implementing the compensation of ground clearance and resettlement.

At present, the highway  of Ha Noi - Hai Phong has been put into operation, exploitation of the whole route over 01 year. The project has been audited by the State Audit of the Project, which has been officially accepted by the State Council for Pre-Acceptance and assessed for its good quality. Up to now, the traffic volume of the Ha Noi - Hai Phong highway is 30-40 thousand vehicles /day, occupying more than 60% of the total traffic volume on Ha Noi - Haiphong road. The Ha Noi - Hai Phong highway is along with the Hai Phong - Ha Long highway expects to be completed in 2017 will promote the efficiency and create great momentum for socio-economic development in the northern key economic region.

In order to recover investment capital, the Prime Minister issued the Decision No. 746 / QD-TTg dated May 29, 2015 regulating the structure of capital source for Hanoi - Hai Phong highway project. To invest and supplement the necessary supporting mechanisms and policies for the Ha Noi - Hai Phong highway project, in which the direct support from the State for the project is about 23% total investment, including:

The State grants compensation for ground clearance to the project (current data is about 4069 billion), assigned the Ministry of Finance, Ministry of Planning and Investment to allocate state budget in the plan. medium-term public investment in the 2016-2020 period to provide support according to regulations;

Turning to the state-invested project with a loan of USD 200 million from the Export-Import Bank of Korea, assigned the Ministry of Finance to lead the same ministries to carry out conversion procedures. For a loan of VND 100 million from the German Reconstruction Bank, the Ministry of Finance will consider the transfer or support in accordance with the Law on Public Debt Management and other relevant laws.

VIDIFI has actively worked, reporting to the Ministry of Planning and Investment, Finance and Transport about support under Decision 746 / QD-TTg mentioned above, however, until now, water for the project under Decision 746 / QD-TTg has not been implemented, specifically:

On July 23, 2015, the Ministry of Planning and Investment issued a document No. 5092 / BKHDT-KCHTDT proposing to include the support in the medium-term public investment plan 2016-2020 of the Ministry of Transport in accordance with the provisions of the Law on Public Investment "

Then, the Ministry of Transport comments in Document 10493 / BGTVT-KHDT dated August 11, 2015 "State budget allocated to the Ministry of Transport in the medium term plan 2016-2020 very limited, the Ministry of Planning and Investment (MoF), the Ministry of Finance (MOF) should put the project into the list of projects to be allocated the medium-term public investment plan 2016-2020 (as an independent plan, not included in the medium term plan of the Ministry of Transport) ".

Based on opinions of the Ministries, in Document No. 7052 / VPCP-KTTH dated 8 September 2015, the Prime Minister instructed the Ministry of Planning and Investment to assume the prime responsibility and coordinate with the Ministry of Communications and Transport, The Ministry of Finance shall allocate state budget capital in the medium term investment plan of 2016-2020 of the Ministry of Communications and Transport to support the expenses for ground clearance and resettlement of the project. "

However, up to now, compensation for site clearance (about VND 4,069 billion) has not yet been included in the medium-term public investment plan 2016-2020. The Decree No. 78/2007 / ND-CP, the Decree No. 108/2009 / ND-CP for important projects, the State shall allocate budget capital for compensation and ground clearance for investors from the beginning of the project; For the Hanoi-Hai Phong highway Project, the investor has not yet been allocated capital by the State for compensation and ground clearance, but has had to pay for ground clearance for over 8 years and has now paid interest rate is 10% / year.