On May 14, Khanh Hoa Provincial People's Committee said that it had submitted a report to the Provincial People's Council related to the Sustainable Environment Project for Coastal Cities - Nha Trang City Sub-project (CCSEP).
The project is invested by the Khanh Hoa Provincial Development Project Management Board, with a total capital of more than 1,380 billion VND (equivalent to more than 60 million USD).
In which, loan capital from the World Bank is more than 35 million USD, including loans from the International Development Association (IDA) more than 33.3 million USD, loans from the International Bank for Reconstruction and Development (IBRD) more than 1.6 million USD; in addition, there is counterpart capital from the provincial budget.
Started in 2019, the project has now completed the first phase items, accounting for about 30% of the total investment.
The Project Management Board has signed contracts for all 6/6 main construction packages of the remaining phase.
However, the ODA capital financing credit agreement expired on June 30, 2024. Two packages NT-2. 1 and NT-2. 3 are currently temporarily suspended due to insufficient ground for implementation.
Besides, the Northern Wastewater Treatment Plant and the wastewater collection pipeline system have been completed and are undergoing temporary handover procedures to put them into operation.
The total cost of site clearance for the project was approved at more than 228 billion VND (approved in May 2025).
However, after updating all approved compensation plans, the total cost of site clearance has now increased to more than 418 billion VND, an increase of about 190.3 billion VND, including contingency costs.
In addition to the increase in site clearance costs, Khanh Hoa Provincial People's Committee said that the two NT-2. 1 and NT-2. 3 bidding packages have previously been temporarily advanced and partially paid out of ODA loans.
When the sponsor recovers this advance, a exchange rate difference of about 8.3 billion VND will arise.
In addition, after review, the cost to continue implementing the remaining items of the project is also expected to increase by about 12.57 billion VND.
Explaining the reasons for the increase in costs, Khanh Hoa Provincial People's Committee said that site clearance work has been implemented since 2017, so it is affected by many fluctuations in land prices, asset compensation unit prices, architectural structures and crops on land.
Along with that, many provincial regulations related to compensation, support, and resettlement policies have changed over time.
In the project preparation phase, functional agencies have not fully anticipated the developments when implementing land recovery according to the Resettlement Policy Framework.
According to the People's Committee of Khanh Hoa province, previously, relevant units had not fully grasped the differences in compensation, support, and resettlement policies according to the World Bank's regulations. At the same time, they have not boldly applied policies that are more beneficial to affected people compared to the current regulations of Vietnamese law.
Site clearance work is expected to be completed in September 2026 and the entire project will be completed before June 2027.
Khanh Hoa Provincial People's Committee proposed to extend the project implementation time until the end of June 2027 to synchronously complete the items, promote investment efficiency and create motivation for local socio-economic development.
