HCMC stops nearly 2,000 billion VND hospital project under the BT form

MINH QUÂN |

Ho Chi Minh City has stopped the project to build a new Orthopedic Trauma Hospital in Binh Chanh District with a total capital of nearly 2,000 billion VND under the BT form, after 15 years on paper.

This is one of 6 projects facing difficulties and obstacles according to Decision No. 1568/QD-TTg, which has just been reported by the Ho Chi Minh City People's Committee to the Prime Minister and the Ministry of Finance.

This project was approved in principle by the Prime Minister in April 2010, allowing Ho Chi Minh City to appoint an investor under the BT (build - transfer) form to build a new Orthopedic Trauma Hospital in Area 6A, New Urban Area of Nam City (Binh Chanh District).

At the same time, the Prime Minister also allowed the city to sell the designated existing land of the hospital at 929 Tran Hung Dao (District 5) at market price to pay the investor.

The project has a scale of 500 beds, with a total investment of nearly 1,997 billion VND (excluding interest during the construction period), to replace the old facility that was seriously overloaded.

However, up to now, the project has not been able to be implemented due to new regulations in Decree No. 63/2018/ND-CP and the Prime Minister's instructions related to the use of public assets for payment in BT projects.

The project has not yet been approved by the competent authority for the feasibility study report, and the bidding documents have not been issued, so it has stopped implementation and is not eligible for transition under the Law on Investment under the public-private partnership (PPP) method.

The People's Committee of Binh Chanh District has approved a compensation and site clearance plan with a total cost of more than VND 92.5 billion, which was advanced by Compensation and Site Clearance Corporation. Of which, more than 83.5 billion VND was used to pay for 62 affected households.

However, the city is currently having difficulty in refunding this expenditure to investors.

The People's Committee of Ho Chi Minh City said that due to the change in the BT contract and the project preparation process lasted for too long (more than 15 years), the content of investment scale is no longer appropriate ... The termination of the project will create a basis for deployment in other forms of investment in accordance with the project nature.

On that basis, Ho Chi Minh City proposed to use public investment capital to repay the funds that the Compensation and Clearance Corporation had advanced for the compensation and site clearance of the project.

Chan thuong Chinh hinh TPHCM tai Quan 5 hien qua tai.  Anh: Nguyen Ly
The Ho Chi Minh City Adults' Injury in District 5 is currently overloaded. Photo: Nguyen Ly

Ho Chi Minh City Orthopedic Trauma Hospital - an existing facility in District 5 - was built in 1985 with a scale of 500 beds.

After nearly 40 years of operation, the number of hospitalizations has increased 680 times, outpatient visits have also increased more than 660 times, causing the hospital to fall into a state of serious overload.

In addition, the dormitory of Cao Thang Technical College located right in front of the hospital also hinders expansion and poses a potential risk of fire safety.

In the context of the new construction project in Binh Chanh being stalled, the Orthopedic Trauma Hospital has applied to accept the old facility of the Blood Transfusion - Hematology Hospital at 201 Pham Viet Chanh (District 1) as facility 2 and has been approved by the city.

At the end of 2023, the leaders of the Ho Chi Minh City Orthopedic Trauma Hospital proposed to stop the project in Binh Chanh and propose to build a new hospital right at the existing location.

The new plan includes the land for Cao Thang dormitory, with a scale of 14 floors, the total estimated investment capital is about 1,500 billion VND.

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