HCM City works to remove roadblocks to key projects

Hanoi (VNA) – Ho Chi Minh City is striving to reactivate several key projects that have been shelved for years with a view to helping ease flooding and traffic congestion.

HCM City has officially entered the rainy season, but a project worth 10 trillion VND (426.4 million USD) on addressing tidal flooding with climate change taken into account hasn’t shown any signs of resumption, the Lao dong (Labour) daily reported.

Though more than 93% of the workload was completed, this anti-tidal flood project has been suspended since late 2020 due to hindrances related to the contract appendix and payment procedures.

Facing the same situation, construction on the third section of Ring Road No 2 has been halted for over three years. The nearly-2.7km stretch, connecting Pham Van Dong road to the Go Dua intersection in Thu Duc city, was invested with over 2.7 trillion VND under the build - transfer (BT) format.

Obstacles related to site clearance and land were blamed for the suspension of this project, with some 44% already completed, since March 2020.

Meanwhile, Tan Ky - Tan Quy Bridge had its construction under the build - operate - transfer (BOT) format started in early 2018. Located in the southwestern gateway of HCM City, it has total investment of over 312 billion VND.

About 70% of workload had been completed by December 2018, but issues related to site clearance and compensation have led to a halt to construction since then.

In early 2023, the HCM City People’s Committee signed the BT contract’s appendix, which extended the completion deadline for the anti-tidal flood project.

The Trung Nam BT 1547 Co. Ltd, which carried out this project, is waiting for the State Bank’s opinion so that the Bank for Investment and Development of Vietnam (BIDV) can disburse capital for the project. If disbursement is made in the next two months, this project can be completed in February 2024 and handed over to the municipal People’s Committee in May the same year.

However, Chairman of the municipal People's Committee Phan Van Mai recently demanded relevant units ramp up efforts to resume the project right this May and complete it by the end of 2023.

Regarding the third section of Ring Road No 2, Vice Chairman of the HCM City People’s Committee Bui Xuan Cuong has directly inspected this project and urged related agencies to complete and re-submit the contract appendix in May. If legal procedures are finished soon, construction can be reactivated as early as in June.

The BOT format of the Tan Ky - Tan Quy Bridge project has been converted into public investment worth nearly 500 billion VND, including about 230 billion VND paid for the finished workload and 261 billion VND for building the remainder.

Authorities of Binh Tan district are also accelerating site clearance so that the project can be recovered this year and completed in 2025, according to Lao dong./.