The super tidal barrier project in Ho Chi Minh City had its capital cut by 6,800 billion VND

MINH QUÂN |

Due to problems that prevented the tide prevention project from disbursing VND6,800 billion in 2024, Ho Chi Minh City decided to transfer capital to other projects.

This information was stated by the Ho Chi Minh City People's Committee in a report on the allocation and disbursement of the state budget investment plan in 2024.

This year, Ho Chi Minh City was assigned to disburse more than 79,263 billion VND, but as of October 11, it had only disbursed nearly 16,800 billion VND, reaching 21.2% of the plan.

One of the main reasons for the delay in disbursement is that the tidal flood prevention project in Ho Chi Minh City, considering climate change factors (phase 1), encountered difficulties in legal procedures and is under the authority of central agencies.

The project is allocated VND6,800 billion in capital this year. After assessing the actual situation, Ho Chi Minh City has determined that disbursing this capital in 2024 is not feasible. Therefore, the Ho Chi Minh City People's Committee has reported and proposed the City People's Council to adjust the medium-term and 2024 capital of the project to other projects. After the problems are resolved, the city will re-allocate capital for the tide prevention project.

In the medium-term plan for the period 2021 - 2025, Ho Chi Minh City has allocated nearly VND 8,883 billion for the flood prevention project. However, the Ho Chi Minh City People's Committee determined that the project is not capable of disbursing all the capital allocated in this period, so it proposed that the Ho Chi Minh City People's Council transfer this capital to the period 2026 - 2030.

Cong ngan trieu Muong Chuoi (huyen Nha Be) lon nhat cua du an. Anh: Minh Quan
The Muong Chuoi tidal sluice (Nha Be district) is the largest of the project. Photo: Minh Quan

The flood control project has a total investment of nearly 10,000 billion VND, started in 2016 intending to control flooding for 570 km², serving about 6.5 million people in the central areas and along the Saigon River.

Although more than 90% of the project has been completed, the project still faces many legal problems, leading to the suspension of construction in November 2020.

The main reason for the project's stagnation is that the investor no longer has enough financial resources to complete the remaining items, with the additional amount of up to 1,800 billion VND needed. Meanwhile, the project's funding unit cannot continue lending due to lack of legal basis.

Faced with this situation, Ho Chi Minh City once proposed a plan to entrust the budget to the Ho Chi Minh City State Finance Investment Company (HFIC) so that this unit could lend to investors and complete the project. However, this plan was assessed by the Ministry of Finance as inappropriate. The project also encountered difficulties in paying for the BT contract, with the total investment exceeding VND10,000 billion - a national important project.

Ho Chi Minh City has reported to the Government and the National Assembly several solutions, including adjusting the total investment and project implementation time. However, this adjustment process may take a long time.

Therefore, the city proposes to allow adjustment of payment terms in the BT contract in parallel with the overall adjustment of the project. After adjustment, Ho Chi Minh City will have a legal basis to pay by land fund, helping to solve capital sources for investors and reduce costs arising from interest during the waiting period.

According to the Ho Chi Minh City Department of Construction, the city currently has 8 main roads flooded due to high tides that have not been resolved, including Tran Xuan Soan, Dao Su Tich, Le Van Luong, National Highway 50, Pham Huu Lau, Huynh Tan Phat, Nguyen Binh, Binh Quoi. The flooding situation on these routes will only be fundamentally resolved when the tidal barrier project is completed.

MINH QUÂN
TIN LIÊN QUAN

375 billion VND to rescue heavily flooded roads due to high tides in Ho Chi Minh City

|

Ho Chi Minh City has decided to spend 245 billion VND to upgrade and renovate Tran Xuan Soan Street (District 7) to prevent flooding and 130 billion VND to build embankments along this road.

Ho Chi Minh City rescues 10,000 billion VND tide prevention project stranded for 4 years

|

Ho Chi Minh City proposed to the Prime Minister many solutions to remove obstacles to the nearly 10,000 billion VND tide prevention project that has been "stranded" for nearly 4 years.

Car crashes into multiple people, injuring 6 in Hanoi

|

Hanoi - A car crashed into many motorcyclists, only stopping when it crashed into a tree on the sidewalk.

36-year-old tourist dies after parachuting in Da Nang

|

Da Nang has just had a paragliding accident in the Son Tra mountain area, killing a tourist.

Admire the giant Bryde whale hunting for prey in Nhon Ly sea

|

Gia Lai - Giant Bryde whale suddenly appeared hunting for prey in Nhon Ly sea area (Quy Nhon Dong ward) creating a spectacular scene.

Supermodel and designer Nam Phong passes away

|

Supermodel Nam Phong passed away in the early morning of July 9, surprising many Vietnamese stars.

The contrasting picture behind PJICO's growth figures

|

Motor vehicle insurance brings a large source of income to PJICO, but also carries high risks because all compensation is borne by the enterprise itself.

375 billion VND to rescue heavily flooded roads due to high tides in Ho Chi Minh City

MINH QUÂN |

Ho Chi Minh City has decided to spend 245 billion VND to upgrade and renovate Tran Xuan Soan Street (District 7) to prevent flooding and 130 billion VND to build embankments along this road.

Ho Chi Minh City rescues 10,000 billion VND tide prevention project stranded for 4 years

MINH QUÂN |

Ho Chi Minh City proposed to the Prime Minister many solutions to remove obstacles to the nearly 10,000 billion VND tide prevention project that has been "stranded" for nearly 4 years.

3 vướng mắc của dự án ngăn triều 10.000 tỉ đồng ở TPHCM

MINH QUÂN |

TPHCM – Cho nhà đầu tư vay tiền để hoàn thiện dự án, điều chỉnh tổng mức đầu tư, phương thức thanh toán cho nhà đầu tư là 3 vướng mắc của dự án ngăn triều gần 10.000 tỉ đồng ở TPHCM, khiến dự án này hoàn thành hơn 90% khối lượng vẫn chưa thể về đích.