5 important transport projects at risk of having their capital revoked by ADB due to slow progress

The People's Committee of Quang Tri province has just issued a directive urging the acceleration of progress and completion of the Basic Infrastructure for Comprehensive Development Project in Nghe An, Ha Tinh, Quang Binh , and Quang Tri provinces - Quang Tri Province Sub-project (BIIG2), due to the risk of the Asian Development Bank (ADB) withdrawing funding because many bidding packages have not yet started construction.

According to a letter dated March 17, 2025, from the ADB in Vietnam to the Acting Chairman of the People's Committee of Quang Tri Province, Ha Sy Dong, regarding the implementation of the BIIG2 Project, five bidding packages currently in the contractor selection process have been warned of the risk of not being completed by the loan agreement's expiration date of September 30. The ADB has stated that it will not accept any payments made after this date.

The Huong Tan - Huong Linh road is severely damaged, while the sub-project to upgrade this route is at risk of having its funding withdrawn - Photo: QH

These five bidding packages are all important road construction projects for socio-economic development, such as: the Hung Vuong Road sub-project connecting the East-West Economic Corridor and the Southeast Quang Tri Economic Zone and the Khe Muoc Lake bypass; the road sub-project connecting Cua Viet Port with the eastern communes of Trieu Phong and Hai Lang districts and the central area of ​​the Southeast Economic Zone; the sub-project upgrading and renovating provincial road DT.579 connecting with the Cam Lo - La Son expressway and upgrading and renovating road DT.582 from km 3+450/DT.582 to km 13+450/DT.582 and constructing Hoi Yen 1 and Hoi Yen 2 bridges; the sub-project upgrading and renovating the inter-communal road Huong Tan - Huong Linh, Huong Hoa district; and the Hung Vuong Road sidewalk renovation project in Dong Ha City.

According to Mr. Nguyen Thanh Binh, Director of the Quang Tri Provincial Investment and Construction Project Management Board, the five aforementioned packages are expected to commence construction in April and May 2025, with a construction period of 4 to 5.5 months. All sub-projects are transportation and agricultural works, and the construction process is highly dependent on weather conditions, site availability, and embankment materials. Therefore, the board will complete the projects before September 30th if the weather is favorable and the localities fully hand over the land.

Based on the report from the Provincial Investment and Construction Project Management Board, the Department of Finance has sent a document to the Provincial People's Committee recommending the acceleration of the BIIG2 Project's progress. Ms. Nguyen Thi Thuong Huyen, Deputy Director of the Provincial Department of Finance, stated that the remaining time to complete the project is limited (approximately 6 months), while the volume of work yet to be completed is very large. Without decisive, focused leadership and the cooperation of relevant agencies and units, there is a very high risk that the project will not be completed on schedule. “Delays in the implementation of these packages not only affect the overall progress of the project but also create significant pressure on the local budget. The Quang Tri Provincial People's Committee will be responsible for allocating sufficient budget to complete the remaining items if the project is not completed on schedule, as directed by the Prime Minister and in accordance with commitments to the ADB,” Ms. Huyen said.

In light of the above situation, on April 2nd, the Vice Chairman of the Quang Tri Provincial People's Committee, Le Duc Tien, signed a document directing relevant agencies and units to urgently expedite the progress and completion of the BIIG2 Project, using ADB loan capital. BIIG2 is a key ODA-funded project of the province; therefore, the Provincial People's Committee requested a focus on resolving all land-related issues, especially in the Hung Vuong road sub-project, reviewing and proposing the counterpart funding needs for this work; and urgently compiling the proposed land clearance funding needs and allocating sufficient central government budget funds for the project.

The Department of Construction and the Department of Agriculture and Environment are tasked with leading the effort to minimize the time required for dossier appraisal. The Provincial Investment and Construction Project Management Board is fully responsible for reviewing the implementation plan, assigning personnel, urging contractors, organizing weekly meetings, and promptly conducting acceptance testing and disbursing funds. In particular, units are required to use investment capital efficiently, avoiding losses and waste, and proactively propose and report to the Provincial People's Committee for guidance on handling issues beyond their authority.

The BIIG2 project has a total investment of US$48.774 million, of which US$33.25 million is ADB loan capital, including: concessional loan (ADF/COL) of US$24.25 million, and ordinary loan (OCR/MOL) of US$9 million. The counterpart funding is US$15.524 million.

Quang Hai

Source: https://baoquangtri.vn/5-du-an-giao-thong-quan-trong-co-nguy-co-bi-adb-thu-hoi-von-do-cham-tien-do-192690.htm