Spending cuts hit infrastructure projects

Work on numerous transport infrastructure projects has ground to a halt nationwide as a result of spending cuts.

The Ministry of Transport has since March suspended 75 projects with total capital of over VND1.4 trillion.

Au Phu Thang, deputy general director of My Thuan Project Management Unit, attributed the situation to financial constraints. Workers will stay off the job until the Government resumes capital disbursement, he added.

Nguyen Nhu Thao, director of Project Management Unit 7 under the ministry, said there were 10 contractors belonging to his unit out of work, something he had not seen for many years.

In a meeting held by the Ministry of Transport on Wednesday, Minister Dinh La Thang said his ministry had worked with the Ministry of Finance to allocate capital for next year, aiming to help local enterprises overcome difficulties.

According to a report from the Ministry of Transport, nearly 100% of planned capital was disbursed in the first nine months of the year, with VND8.74 trillion coming from the state budget, VND11.069 trillion from government bonds and other sources.

Projects under build-operate-transfer (BOT) form estimated to cost VND4.7 trillion were disbursed at VND4.56 trillion


Source: Sai Gon Times

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