Land clearance costs for Bien Hoa Expressway

Perspective of Bien Hoa - Vung Tau expressway.

On October 8, Minister of Transport Nguyen Van Thang reported to the National Assembly on the implementation of National Assembly Resolution No. 59/2022/QH15 on the investment policy of the Bien Hoa - Vung Tau Expressway Construction Investment Project, Phase 1.

The Bien Hoa - Vung Tau Expressway Construction Investment Project Phase 1 has a total length of 53.7km, the scale of phase 1 is from 4 - 6 lanes, the total investment is 17,829 billion VND with the goal of completing and putting into operation synchronously with the North - South Expressway in the East, Long Thanh International Airport, connecting economic centers of seaports.

Divided into 3 component projects in the form of public investment. Of which: Component project 1 ( Dong Nai Provincial People's Committee as the managing agency) has a length of about 16km with a preliminary total investment of 6,012 billion VND. Component project 1 has 2 construction packages that started in June 2023. Up to now, the handover area is still limited (58.10/137.64 ha has been handed over, reaching 38.4%), so it has mainly only been constructed at some bridge works and produced construction components; the output value reached about 4.5% (128/2,851 billion VND).

Component 2 project (Ministry of Transport as the managing agency) has a length of about 18.2km with a preliminary total investment of 6,852 billion VND, with 2 construction packages. Currently, the site has been handed over intermittently (102.59/176.74ha has been handed over, reaching 58.05%), so currently, construction has mainly only been carried out at some bridges, underpasses, drainage culverts... and some roadbed locations (weak soil treatment, unsuitable soil excavation,...) on site; the output value has reached about 14.4% (615/4,279 billion VND).

According to the Ministry of Transport, for component projects 1 and 2 in Dong Nai province, construction progress has not met requirements due to slow site handover.

Component 3 Project (with the People's Committee of Ba Ria - Vung Tau province as the managing agency) has a length of about 19.5km with a construction package, with a preliminary total investment of 4,964 billion VND. The site of this Project has been completely handed over, the source of earth filling materials is guaranteed, contractors have implemented construction simultaneously on the entire project; the output value reached about 37.29% (689/1,847 billion VND), the construction progress meets the requirements.

Also according to Resolution No. 90/NQ-CP dated July 25, 2022 of the Government, localities strive to hand over 70% of the construction site area of the construction packages that started construction before June 30, 2023 and basically hand over the remaining area before December 31, 2023. However, in reality, only Component Project 3 has handed over the construction site meeting the requirements (100% handed over so far); Component Project 1 and Component Project 2 in Dong Nai province have only been handed over about 40% so far, not ensuring the construction site to deploy construction simultaneously on site.

On the other hand, the work of compensation and resettlement support for component projects in Dong Nai province is being implemented very slowly, not meeting the required progress according to Resolution No. 90/NQ-CP dated July 25, 2022 of the Government.

According to reports from localities, the current calculated site clearance costs of component projects are expected to increase by about VND 3,267 billion compared to the site clearance costs at the total investment level according to Resolution 59/2022/QH15 of the National Assembly (Component project 1 increases by VND 120 billion; Component project 2 increases by VND 1,272 billion; Component project 3 increases by VND 1,875 billion).

The increase in site clearance costs led to the total project investment exceeding the preliminary total investment approved by the National Assembly, requiring adjustment of the investment policy.

In addition, in Component Project 3, the People's Committee of Ba Ria - Vung Tau province proposed to add the My Xuan - Ngai Giao intersection (intersection with provincial road DT.991) to improve transport capacity, connecting Cai Mep - Thi Vai port area with Long Thanh International Airport, so the additional cost is expected to be about 1,581 billion VND (construction cost 768 billion VND, site clearance cost 813 billion VND).

Thus, the total investment of the project is expected to increase by about VND 5,400 billion (including the above contents and some other related items updated, supplemented, and adjusted to promote investment efficiency). Currently, the Ministry of Transport is organizing internal appraisal of the project investment policy adjustment dossier and completing it for submission to competent authorities according to regulations.

On that basis, the Government recommends that the National Assembly and the National Assembly Standing Committee thoroughly resolve difficulties in site clearance and resettlement; relocation of technical infrastructure; prioritize and focus on resolving difficulties in the supply of construction materials to meet the volume required according to the construction progress of projects as well as coordinate with the Ministry of Transport and relevant ministries and branches to strengthen State management, closely monitor implementation, and ensure compliance with legal regulations.

The Government also requested the National Assembly to pay attention and consider approving the adjusted investment policy of the project to ensure capital for project implementation to meet progress.

Source: https://dangcongsan.vn/kinh-te/chi-phi-giai-phong-mat-bang-cao-toc-bien-hoa-vung-tau-tang-3267-ty-dong-680052.html