NA Vice Chairman concerned with capital shortages for transport projects

Vice Chairman of the National Assembly Phung Quoc Hien expressed his concern regarding a lack of funds for transport projects in the 2016-2020 period, at a working session with the Ministry of Transport, in Hanoi on August 8.

According to the Ministry of Transport, the transport sector needs approximately VND952.7 trillion (US$41.92 billion) to be invested in transport projects from 2016 to 2020.

However, the funds allocated from the State budget to the ministry have met just 31% of the total investment demand.

Hien is concerned that the transport sector cannot complete the planning and tasks for transport infrastructure development in the period, amid the anticipated capital shortages.
With this lack of source in funding, the transport sector cannot carry out new projects in addition to the 27 on-going projects as scheduled, Hien noted.

The Ministry of Finance also suggested that the Ministry of Transport takes into account funding from investors, due to the budget limit and the termination of ODA loans by the end of this year.

In regard to the capital for nearly 1,400km of the North-South expressway, the Ministry of Transport said that the Vietnam Expressway Corporation (VEC) can ask for loans but it requires specific mechanisms from the Government.

The Ministry of Transport also said that it is accelerating the progress of important projects, such as the North-South expressway, the North-South high-speed railway and the Long Thanh international airport, in order to meet the economic development demand.

However, the NA Vice Chairman also noted that the ministry should make rough calculations amid limited investment resources.

Hien affirmed that the issues related to the allocation of sufficient funds for ODA projects, funds for the 27 on-going projects using State budget, and the mechanisms for other important projects will be discussed at the National Assembly meetings in the near future.

(Source: NDO)