Sustainable environmental project sees budget overrun of 190 billion VND.

The People's Committee of Khanh Hoa province has submitted a proposal to the Provincial People's Council regarding the adjustment of the Coastal Cities Sustainable Environment Project - Nha Trang Sub-project (CCSEP). This is a key project with a total investment of over 1,380 billion VND (equivalent to 60 million USD), using loan capital from the World Bank and local counterpart funds.

Although construction began in 2019, the project has only completed approximately 30% of its investment value to date. Notably, among the six main packages of phase 2, two crucial packages (NT-2.1 and NT-2.3) are currently suspended due to the lack of cleared land for implementation. Meanwhile, the ODA financing agreement from the World Bank officially expired on June 30, 2024, placing immense pressure on the province's progress and financial resources.

The project's land clearance budget has increased by an additional 190 billion VND.

According to a report by the People's Committee of Khanh Hoa province, the initial approved land clearance cost was 228 billion VND. However, after updating the actual figures, this number has skyrocketed to over 418 billion VND, an increase of approximately 190.3 billion VND (including contingency).

Explaining this shortfall, the authorities in Khanh Hoa province pointed out the main reasons: Time constraints, with land clearance work lasting from 2017 to the present, causing significant changes in land prices and compensation rates for assets and crops. Policy conflicts: In the initial stages, the relevant units did not fully understand the differences between Vietnamese regulations and the World Bank's policy framework.

In addition, the project incurred approximately VND 8.3 billion due to exchange rate differences when the donor recovered the advance payment of ODA funds, and over VND 12.5 billion in costs to complete the remaining items.

To salvage the project's progress and maximize investment efficiency, the People's Committee of Khanh Hoa province has requested the Provincial People's Council to consider extending the project implementation period until the end of June 2027. According to the new roadmap, the locality is determined to complete land clearance by September 2026. Currently, the North Nha Trang wastewater treatment plant and its collection sewer system have been completed and are undergoing handover procedures to be put into operation soon, minimizing environmental pollution in Nha Trang.

Source: https://tienphong.vn/du-an-moi-truong-ben-vung-doi-von-190-ty-dong-post1843159.tpo