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Da Nang: Suspended construction of 12 key routes

Suspended construction of 12 key routes

Construction Department of Da Nang City has the official letter 9010 / SXD-TTS requires investors to work on the key roads in service of APEC 2017 high-level to suspend construction from 5 to November 11.

Specifically, the allocation of land to pay investors before the completion of infrastructure works is not appropriate because the state infrastructure planning mechanism, land auction to pay investors for the infrastructure construction will bring more efficiency.

Suspended construction of 12 key routes
Suspended construction of 12 key routes

In addition, the Decree does not provide detailed regulations on the evaluation of the quality and valuation of infrastructure and the valuation of land to investors. The issue of value management to the Ministry of Finance is also a management mechanism associated with the risk of corruption is very high. The decree confirms the BT contract is the main basis for the State and investors to implement but there is no specific provisions on this type of contract.

“In principle, the land paid to investors can only be implemented after completion of infrastructure works, acceptance on quality, final settlement and independent auditing because they know the specific value. This allows for a very high level of corruption and the possibility of loss of land assets is likely to occur in reality, “Vo said.

According to Prof. Vo, the central issue of the BT project is how the value of infrastructure works and the value of land exchanged need to be determined. Specifically, what is the value of the road constructed by anyone who evaluates the quality, who determines the price, finalizes, audits or derives only the estimated value in the investment project?

Likewise, the land used for roadside conversion is calculated based on the price of agricultural land or residential land, whether the land has been constructed or not.

Professor Dang Hung Vo said that it is time to fare land exchange mechanism for infrastructure in the province has developed well. The BT mechanism only applies to underdeveloped localities, weak budget revenues, and central budgets still have to be supported, with insufficient infrastructure to attract investment.

“In localities with well-developed infrastructure, they do not implement BT projects but have to implement the state land auction mechanism for infrastructure development. The BT project, which encourages public investment in partnerships, is based on a fee-for-service basis, public services, “Vo said.

Specifically, detailed requirements for cost-benefit analysis should be established between the BT mechanism and the state-owned public asset auction mechanism for financing infrastructure construction (or as a basis for implementing decisions). project BT); The specific contents must be mentioned in the BT project implementation contract between the State and investors.

Land is not allowed to be paid to the investor before acceptance, completion of quality assessment and valuation; To use land for payment to infrastructure investors must be in line with the plan on housing development in proportion to the infrastructure in urban development.

In addition, there should be specific regulations on the process of evaluating the quality and valuation of the constructed works and the land used for payment to investors as well as the requirement of publicity and transparency of all information on the project. To create mechanisms for local people to participate in the supervision and regulation on accountability of state agencies involved.

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Da Nang: Suspended construction of 12 key routes
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