Ho Chi Minh City submits to the Prime Minister a plan to remove obstacles to the 10,000 billion VND flood prevention project
Báo Dân trí•25/09/2024
(Dan Tri) - To resolve the many-year-old problem of the 10,000 billion VND flood prevention project, Ho Chi Minh City proposed to the Prime Minister a plan to adjust the project implementation time as a basis for signing an appendix to the contract with the investor.
Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People's Committee, has just signed a document reporting to the Prime Minister on the plan to remove obstacles for the project to solve flooding caused by tides in the Ho Chi Minh City area, taking into account climate change factors, phase 1 (the 10,000 billion VND anti-flooding project). Currently, this project is facing 3 difficulties and obstacles in the implementation process. Specifically, the project's authority and implementation procedures have not been clearly defined when many contents have changed, leading to the project falling under the criteria of a national important project. The project currently has no capital to complete. The reason is that BIDV Bank does not have enough basis to sign an appendix to the credit contract with the investor to submit to the State Bank to extend the disbursement time for re-lending.
The 10,000 billion VND anti-flooding super project in Ho Chi Minh City has achieved more than 90% of the work volume (Photo: Hai Long).
The Ho Chi Minh City People's Committee also presented the lack of basis to mobilize capital entrusted to investors and enterprises to continue construction and complete the project. To overcome shortcomings related to the payment plan for investors, the Ho Chi Minh City People's Committee proposed to consider adjusting the payment plan for the signed BT (build - transfer) contract. The plan is adjusted in the direction of paying in advance by land fund to investors, corresponding to the value of the BT project completed according to the progress determined by the competent State agency according to the provisions of the law on construction investment; the difference will be paid in cash to ensure compliance with the regulations at the time of signing the contract. The Ho Chi Minh City People's Committee said that the total investment of the project has changed, the project implementation period has expired, the contract signing and implementation have some shortcomings, to ensure the legal basis, the agencies need to make adjustments to the project. However, the overall project adjustment procedure is very complicated, time-consuming and requires negotiation between the bank and the investor on how to calculate the loan interest. Therefore, the Ho Chi Minh City People's Committee proposed to adjust the payment terms in the contract in parallel with the overall project adjustment. The project will be implemented in parallel with the procedures to adjust the implementation time as a basis for signing the BT contract appendix to change the payment method. This is the basis for Ho Chi Minh City to start paying with the land fund, which is the land plots identified in the BT contract according to current regulations, solving the capital source for the investor to complete the project, reducing the cost of interest incurred while waiting for the completion of the project adjustment procedures.
The Tidal Flooding Solution Project in Ho Chi Minh City, taking into account climate change factors, phase 1, is a key project of the city, contributing to the completion of the breakthrough program "Reducing flooding, responding to climate change, rising sea levels". The project is implemented with the goals of preventing high tides and responding to the impacts of climate change for an area of 570km2, with about 6.5 million people on the right bank of the Saigon River and the center of Ho Chi Minh City. The project started in mid-2016, expected to be completed in April 2018, with a total investment of about 10,000 billion VND. However, difficulties and obstacles in site clearance and capital sources have caused the project's completion progress to be delayed many times.
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