The 10,000 billion VND anti-flooding project in Ho Chi Minh City cannot mobilize capital.

On the afternoon of November 7, at a press conference on the socio -economic situation of Ho Chi Minh City, Mr. Do Quang Hung - Head of the Public-Private Synthesis Department - Ho Chi Minh City Department of Planning and Investment said that the implementation of the PPP project (public-private investment of the 10,000 billion VND flood prevention project) under this special mechanism is currently facing difficulties and problems.

According to a representative of the Ho Chi Minh City Department of Planning and Investment, the biggest difficulty of the 10,000 billion VND anti-flooding project is the inability to continue mobilizing capital.

According to the Head of the Public-Private Synthesis Department - Ho Chi Minh City Department of Planning and Investment, the reason for the difficulty in the mechanism is the continuous change in legal regulations related to the application of the mechanism of BT (build - transfer) contracts.

“Although the project has been 90% completed, the Ho Chi Minh City People's Committee has not been able to pay the investor. The reason is that the payment conditions are not met according to the law and the provisions of the signed contract, along with the conditions for loan disbursement and refinancing for the project have also expired,” said Mr. Hung.

Regarding the difficulties and problems in the 10,000 billion VND flood prevention project, the Prime Minister has established a separate working group to direct the review and removal of difficulties and problems.

Although it has reached about 90% of the volume, the 10,000 billion VND super flood prevention project in Ho Chi Minh City is still "unclear" about the completion date.

As for Ho Chi Minh City, according to Mr. Hung, the city has also proactively researched and repeatedly proposed solutions to the Central Government. However, there has not yet been a consensus due to legal regulations.

The Ho Chi Minh City People's Committee also reported to the Prime Minister on the implementation status and proposed directions to remove difficulties and obstacles for the project.

According to the Head of the Public-Private Synthesis Department - Ho Chi Minh City Department of Planning and Investment, the biggest difficulty of the project is the inability to continue mobilizing capital (estimated at 1,800 billion VND) to complete the construction.

“This problem stems from the fact that BIDV bank does not have enough basis to sign a credit contract with the investor to submit to the State Bank to extend the re-lending disbursement time.

In fact, the State Bank has collected debt and refinanced BIDV for about VND3,560 billion. Therefore, in case the State Bank extends the loan disbursement period for refinance, BIDV cannot continue to disburse to investors because it does not meet the conditions for payment by the Ho Chi Minh City People's Committee," said Mr. Hung.

The first phase of the tidal flood control project in Ho Chi Minh City started in mid-2016 and is expected to be completed in 2018.

The project is very important in controlling flooding caused by high tides and proactively responding to climate change for an area of ​​570 km2 with about 6.5 million people in the right bank of the Saigon River and the center of Ho Chi Minh City.

The project to solve tidal flooding in Ho Chi Minh City area has a scale of 6 tidal barriers (Tan Thuan, Ben Nghe, Phu Xuan, Muong Chuoi, Cay Kho and Phu Dinh tidal barriers) and building a 7.8km long river embankment from Vam Thuat to Kinh River. The project officially started on June 26, 2016.

To date, the project has completed about 90% of the volume, but the final completion time has not yet been determined.

Luong Y

Source: https://vtcnews.vn/du-an-chong-ngap-10-000-ty-dong-o-tp-hcm-khong-the-huy-dong-von-ar906146.html