Mr. Quach Ngoc Tuan, Deputy Director of the Department of Planning and Investment of Ho Chi Minh City, informed this at a regular press conference held on July 4.

According to Mr. Tuan, the 10,000 billion VND flood prevention project invested by Trung Nam Company has so far completed about 90% of the volume and is in the construction phase to complete the remaining construction items to put into use.

However, construction work is facing difficulties in payment capital and must be temporarily suspended.

The Ben Nghe tide control sluice, District 1, items are now 97% completed.

The reason is that recently, due to the expiration of the re-lending disbursement period from September 2020 according to Decision No. 770/QD-NHNN dated April 27, 2020 of the State Bank of Vietnam, the State Bank of Vietnam stopped disbursing to the Joint Stock Commercial Bank for Investment and Development of Vietnam - BIDV to continue lending to investors to implement the project.

Based on the report of the City People's Committee, the Government issued Resolution No. 40/NQ-CP dated April 1, 2021 allowing the City People's Committee to continue implementing the project according to the special mechanism approved by the Prime Minister in Notice No. 285/TB-VPCP dated August 20, 2015 of the Government Office and the procedures approved by competent authorities to ensure socio-economic benefits and avoid wasting invested resources.

On January 31, 2023, the City People's Committee signed the BT Contract Appendix and Minutes of Agreement with the investor to continue implementation.

However, due to difficulties in the payment mechanism of the BT Contract and the capital source to complete the construction, the City reported to the Government Working Group on the difficulties and proposed solutions to issue a new Resolution.

This is to resolve problems related to the payment mechanism for the project, solutions to mobilize capital to complete the construction, adjust the total investment according to the State Audit conclusion... in order to soon complete the construction of the project.

If the Government Working Group resolves the difficulties, the Investor commits to completing the project within 6-8 months from the date of disbursement.

On May 17, 2024, Trung Nam Company sent a written notice to the City People's Committee that it would start mobilizing personnel to resume construction of Ben Nghe culvert from June 1, 2024.

Accordingly, the Investor has proposed that the City People's Committee soon approve the dumping site for mud and soil so that dredging and rock layering can be carried out to reinforce the riverbed, and at the same time, it has proposed to grant a permit for construction of onshore items.

The City has assigned the Department of Natural Resources and Environment and the Department of Construction to study and advise on the above recommendations. Currently, the units are advising the City People's Committee to facilitate the early construction of the Ben Nghe culvert project.

The Ho Chi Minh City Tidal Flood Control Project Phase I started in mid-2016 and is expected to be completed in 2018. The project is very important in controlling tidal flooding 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 City Center.