Government removes counterpart funding obstacles for Ben Luc

Accordingly, the Government agrees in principle that the Vietnam Expressway Corporation (VEC) is responsible for balancing and arranging the remaining counterpart capital to continue implementing and soon completing the Ben Luc - Long Thanh Expressway construction project (the project) as proposed by the Ministry of Planning and Investment in Submission No. 8536 and related documents.

The Government assigns the Ministries of Planning and Investment, Transport, State Capital Management Committee at Enterprises and VEC, based on their assigned functions and tasks, to take full responsibility before the Prime Minister and the Government for the accuracy of information, data reported and proposed, including data on the amount of counterpart capital allocated, disbursed and the amount of counterpart capital that needs to continue to be allocated to complete the project.

In addition, the Government assigned VEC to balance, arrange counterpart funds and implement the project to ensure compliance with legal regulations, the interests of the State, the legitimate rights and interests of relevant parties, avoid loss and waste of investment capital, ensure progress, quality and efficiency, and prevent complicated disputes and complaints. In particular, VEC is responsible for ensuring debt repayment obligations to the Government and other financial obligations as prescribed.

Chính phủ gỡ vướng vốn đối ứng của dự án cao tốc Bến Lức - Long Thành - 1 — The Ben Luc - Long Thanh Expressway project started construction in July 2014 and was promised to be completed in 2018, but to date, the project remains unfinished (Photo: Hai Long taken around January 2023).

Previously, the Ministry of Planning and Investment proposed that the Prime Minister consider and approve a resolution on assigning VEC to allocate sufficient counterpart capital to continue implementing the Ben Luc - Long Thanh expressway project.

On February 21, the company committed in writing to self-arranging VND758 billion for the remaining counterpart capital of the project, and at the same time balancing finances to fully fulfill VEC's debt repayment obligations, including ODA loans due and repayment of principal, interest on government-guaranteed bonds and other financial obligations.

During an inspection trip to the Ben Luc - Long Thanh expressway construction site on the afternoon of March 13, Deputy Prime Minister Tran Hong Ha assessed that the project's progress of 3 years and 9 months is too slow, and discussed with leaders of ministries and branches to come up with plans to speed up the process, especially in handling administrative procedures.

The Deputy Prime Minister also asked about the amount of VND 5,116 billion from VEC's unused idle fee revenue (including money to repay loans and VEC's legal capital).

VEC leaders replied that this source of capital is currently deposited in the bank. With this source, VEC said, it will be used to balance enough to pay off debt and the remaining balance will ensure the ability to allocate capital for the project.

The Deputy Prime Minister said it was unreasonable that VEC's idle money was being deposited in savings while the project was behind schedule for many years due to lack of capital. At the same time, the Deputy Prime Minister also asked ministries and branches to review the allocation of funds.

The Ben Luc - Long Thanh Expressway project was approved by the Prime Minister in Document No. 1795 dated October 5, 2010 and the project was approved by the Ministry of Transport on December 31, 2014.

The project is about 57.8km long with a total investment of VND31,320 billion, including ADB loan of more than VND13,600 billion, JICA capital of nearly VND12,000 billion and counterpart capital of more than VND5,689 billion.

Source