Ho Chi Minh City: 10,000 billion VND flood prevention project stalled, generating 2,369 billion VND in loan interest
The project to solve flooding caused by tides in Ho Chi Minh City, taking into account climate change factors - phase I has been delayed for a long time, so the interest incurred to date is 2,369 billion VND.
Trung Nam Construction Investment Joint Stock Company has just sent Document No. 556/024/CV/TNG to the Chairman of Ho Chi Minh City People's Committee reporting on the progress of the Project to solve flooding caused by tides in Ho Chi Minh City area taking into account climate change factors - Phase 1 (Anti-flooding project of nearly 10,000 billion VND).
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| Ben Nghe tide control sluice has not been removed from the dredged mud dumping site, so construction cannot resume - Photo: TN |
The investor said that up to now, many problems related to the Project have not been resolved. In particular, the total investment of the Project has not been adjusted.
According to the investor's calculation, the total investment is expected to increase from VND 9,976 billion to VND 14,398 billion (according to the expected completion schedule of the Project by the end of 2025).
Interest expense alone as of July 26, 2024 has reached VND 2,369 billion, with an average daily interest rate of more than VND 1.7 billion.
The next problem is that the payment of BT land fund to investors has not yet been implemented by the Ho Chi Minh City People's Committee.
On May 17, 2024, the investor sent a document to the Ho Chi Minh City People's Committee regarding the construction of the Ben Nghe tide control culvert from June 1, 2024. However, up to now, the Ho Chi Minh City People's Committee has not resolved the problems related to the location of the dredged sludge dumping site and the issuance of a permit for the construction of the underground cable line, so the construction has not been carried out.
According to the investor's report, up to now, the entire Project has completed more than 90% of the work volume but has been temporarily suspended from November 15, 2020 until now.
The investor said that due to the prolonged delay of the project, interest expenses arose, causing the total investment of the project to increase from VND 9,976 billion to VND 14,398 billion.
The project is now 6 years behind schedule, but the completion date has yet to be determined. The delay in completing the project means that the 570 km2 area with about 6.5 million people in Ho Chi Minh City will have to continue living with high tides.
Source: https://baodautu.vn/tphcm-du-an-chong-ngap-10000-ty-dong-dinh-tre-phat-sinh-2369-ty-dong-tien-lai-vay-d221743.html
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