As of the end of November, the capital construction investment budget of Hoa Vang district was VND207 billion/VND573 billion, reaching 36% of the capital plan. If including the budget transferred from 2023 and the increase in district budget revenue, the total disbursed budget as of November 20 was VND285 billion/VND692 billion, reaching 41.14%.
According to the People's Committee of Hoa Vang District (Da Nang City), one of the reasons for the low disbursement (less than 50%) is that this unit focuses highly on site clearance for key national and city projects according to the progress requirements assigned by the Government and the City, which affects the site clearance progress of the district's projects. This leads to the district's projects not meeting and closely following the construction requirements. In the first months of the year, the projects encountered many difficulties in terms of raw material prices, rising gasoline prices, and a shortage of sand, stone, and soil supply at certain times. Some projects during the construction process encountered technical problems and incurred compensation and clearance costs due to the implementation of specific compensation prices, so the project had to be adjusted.
The People's Committee of Hoa Vang district also said that the Bidding Law 2023 took effect from January 1, but it was not until early March that there were detailed guidelines for implementation leading to the implementation of contractor selection for new projects that were behind schedule. On December 29, 2023, the City issued decisions announcing unit prices for construction labor, unit prices for construction machinery and equipment in 2023 in Da Nang City. Projects that have not yet selected contractors must approve adjustments to the project cost estimates according to the new prices. In case the investment scale exceeds, the project investment scale must be approved.
The online bidding process was implemented in accordance with regulations, however, there were still delays in the bidding evaluation stage. Some contractors participated in the bidding and won the bid, but when implementing, they did not ensure the progress commitments did not meet the actual requirements of the project. The project management unit has not yet had sanctions to handle and review these contractors in the next biddings. The construction progress is also affected by weather factors, especially traffic works, which partly reduces the completed volume for payment, which is also one of the reasons why Hoa Vang district has low capital disbursement.
