Because the nearly 10,000 billion VND flood prevention project has completed 93% of the volume, but has been "shelved" for many years, causing daily interest to be more than 1.7 billion VND.
The project has been suspended 3 times in the past 8 years, the most recent suspension lasting from November 15, 2020 to present (about 48 months). When operations are suspended, costs arise, including bank loan interest. With a daily payment of more than 1.7 billion VND, along with other costs, the total investment of the project has increased to more than 14,000 billion VND. Of course, it must be completed by the end of 2025, but if it is extended, it is not known how much it will be.
Thus, the shelving scenario resulted in capital increase, just like many other projects. The flood prevention project with an initial total investment of 10,000 billion VND has increased by 4,000 billion VND.
That figure is not yet satisfactory, because according to the investor, if the investment adjustment procedures are not carried out soon, after the capital source is resolved, the project completion time may take another 28 months (including 12 months for handling procedures, 4 months for negotiating contract appendices and 12 months for the remaining construction). With each passing day, the interest payable increases, expected to generate an additional 845 billion VND for 16 months of procedures.
The question is why can't the procedures be shortened, why does it take 12 months to process and not a few months or half that time. Why does it take 4 months to negotiate a contract and not 1 month?
Procedures are set by humans, humans can proactively change or flexibly shorten them. If you are determined to do it, you will definitely do it.
Here, shortening the time is not only saving hundreds of billions, thousands of billions of dong, but also putting the project into operation soon, which will bring many benefits to the people and society.
A flood season, the damage to people is difficult to calculate, that is what individuals and responsible agencies pay attention to in order to shorten the time.
The interest payments and the additional costs of several thousand billion VND are included in the total investment of the project and the city government must bear them. After all, it is the people's tax money, not anyone else's.
Therefore, we must find every way to resolve the problems and complete the project as soon as possible, it cannot be delayed any longer.
