The nearly 2.8 km long section of Ho Chi Minh City's Ring Road 2, from Pham Van Dong Street to Go Dua intersection, has been under construction since 2017 under the BT (build-transfer) form, with a total capital of more than VND 2,700 billion (including site clearance costs of more than VND 1,800 billion).
The project has a land clearance scale of 67 m wide and builds two parallel roads with 3 lanes on each side, the land in the middle is reserved for future implementation items.
According to the original plan, this road section was expected to be completed in 2020, helping to connect the two main axes of Pham Van Dong and National Highway 1, significantly reducing the distance having to go around routes such as Linh Dong and National Highway 13.
However, problems in adjusting and signing the contract appendix, as well as procedures for paying land funds to investors, caused the project to stop construction in March 2020, when it had only reached nearly 44%.
Recorded at the scene on January 5, the construction site was abandoned. Village trails snaked through the overgrown area.
Large drainage culverts lie in disarray, rusty steel, and two bridges crossing small canals near the Go Dua intersection, with only the rough construction, are also bare. Some areas are even used as livestock farms.
At the end of January 2024, the Ho Chi Minh City People's Committee approved adjustments to the project's feasibility study report, postponing the completion deadline to 2026.
However, up to now, problems related to signing contract appendices and land fund payments have not been resolved, making it impossible for the project to restart.
Van Phu Bac Ai Joint Stock Company - the investor of the project - said that it has spent more than 1,474 billion VND (excluding interest) to carry out site clearance and construct part of the project. Currently, interest expenses are arising at about 15 billion VND per month.
According to the Department of Planning and Investment of Ho Chi Minh City, the BT contract for the project was signed in 2016, with the regulation of using 6 land plots to pay investors.
However, during the project approval step, these lands were not included in the feasibility study report, leading to legal troubles.
In 2019, the State Audit recommended that Ho Chi Minh City review and update financial indicators, adjust the value and total investment capital of the project, and carry out legal procedures related to the use of land plots in the payment list according to the signed contract.
To ensure payment to investors, the project needs to supplement and adjust relevant contents in the feasibility study report.
However, according to current law, the appraisal and approval of these contents is not under the authority of the Ho Chi Minh City People's Committee.
Therefore, Ho Chi Minh City needs to report to the Prime Minister for consideration and permission for the city to carry out procedures for preparing, appraising and approving adjustments to the feasibility study report (including the project's financial plan).
On January 4, during a working session with Prime Minister Pham Minh Chinh, this project was one of 12 projects that the city proposed to ask for approval to remove obstacles.
The Prime Minister has directed the city to base on Resolution 98 and a new Resolution of the Government (expected to be issued before January 15) to handle issues within its authority, in order to continue implementing the project.
