Report to the Prime Minister to remove obstacles on the 2.7 km section of Ho Chi Minh City Ring Road 2

The adjustment of the feasibility study report for the 2.7 km section of Ring Road 2, Ho Chi Minh City has some contents that are not under the authority of Ho Chi Minh City, so it must be reported to the Prime Minister for consideration according to regulations.

The adjustment of the feasibility study report for the 2.7 km section of Ring Road 2, Ho Chi Minh City has some contents that are not under the authority of Ho Chi Minh City, so it must be reported to the Prime Minister for consideration according to regulations.

The Department of Planning and Investment of Ho Chi Minh City has just reported to the City People's Committee on adjusting the Feasibility Study Report of the 2.7 km Ring Road 2 Project, Ho Chi Minh City (section from Pham Van Dong Street to Go Dua - National Highway 1 intersection, Thu Duc City).

According to the report, the construction contract for the 2.7 km section of Ring Road 2, Ho Chi Minh City was signed in 2016 under the BT (build - transfer) form , in which the City will use 6 plots of land to pay the investor.

Although the contract was signed, the Feasibility Study Report did not mention the land plots expected to be paid to the investor.

The construction site of the 2.7km Ring Road 2 project has been abandoned for many years due to project stagnation. Photo: Le Quan

By 2019, the State Audit issued a conclusion notice and requested Ho Chi Minh City to review and update to adjust the indicators, financial data, total investment capital and inappropriate content.

Therefore, to ensure land fund payment to investors, the Project must adjust and supplement payment-related contents to the approved Feasibility Study Report to comply with regulations.

However, according to Article 28, Decree No. 15/2015/ND-CP, the contents pointed out by the State Audit such as approving adjustments to contents related to the financial plan of the Project are not under the authority of the Ho Chi Minh City People's Committee.

On December 6, 2024, the Ministry of Planning and Investment issued a document guiding and requesting Ho Chi Minh City 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.

The 2.7 km investment project of Ring Road 2 (section from Pham Van Dong Street to Go Dua - National Highway 1 intersection, Thu Duc City) started construction in 2017, but the project has been suspended since 2020 due to problems with site clearance and changes in investment regulations in the form of BT.

Up to now, Van Phu Bac Ai Joint Stock Company (investor) has spent more than 1,474 billion VND (excluding interest) to finance site clearance and partial construction of the Project. The investor said that the current interest expense is 15 billion VND/month.

Source: https://baodautu.vn/bao-cao-thu-tuong-go-vuong-doan-27-km-duong-vanh-dai-2-tphcm-d234721.html