Restriction on capital advance for road contractors

Source: Pano feed

Le Anh


Owners of the traffic projects financed by the State budget and government bonds and the agencies in charge of such projects should only do the work whose costs can be covered by the funds allocated to them in 2013.


In case of capital advance, contractors can be given a maximum sum of only 30% of the annual capital allocation plan for the projects. If the plan had been adjusted and the sum given in advance exceeds 30% of this plan, the project owners should recover part of the advanced sum.


Deputy Minister of Transport Nguyen Hong Truong told the Daily that the ministry was striving to settle its capital construction debt to contractors of completed and operational projects.


He said the transport ministry next week would reveal the figure of capital construction debt in the transport industry. Although the figure has not been unveiled, it is presumably quite large.


In a report on six-month operation review, the transport ministry stated its main task in the second half of the year was to deal with the capital construction debt to contractors of the projects run by the ministry.


Earlier this month, the Government requested ministries and localities to focus on tackling capital construction debt owed to contractors who have used their own capital to execute projects to be reimbursed later.


During this year, the Government has asked ministries and localities to prioritize their funds for capital construction debt settlement. Prior to May 20 every year, at least 30% of the capital construction debt must be resolved.


As of end-2012, capital construction debt in 63 cities and provinces had totaled more than VND91 trillion, including over VND25 trillion owed to finished projects, according to a report by the Ministry of Finance.




Đăng ký: VietNam News

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