The People's Committee of Ho Chi Minh City has just reported to the National Assembly's Economic Committee a plan to resolve difficulties in implementing the project to solve flooding caused by tides in the Ho Chi Minh City area, taking into account climate change factors (phase 1 - abbreviated as the 10,000 billion VND tide prevention project).

In the report, the Ho Chi Minh City People's Committee pointed out 3 major difficulties and problems remaining in the project implementation process.

Firstly, the authority and implementation procedures for projects that are in the process of being implemented have not been clearly defined. The changes lead to the project falling under the criteria of national importance.

The second problem is related to the mobilization of capital to complete the project, stemming from the fact that BIDV Bank does not have enough basis to sign an appendix to the credit contract with Trung Nam BT 1547 Company Limited. Therefore, BIDV Bank cannot submit to the State Bank of Vietnam to extend the time for re-lending disbursement.

Finally, there is the difficulty related to the lack of a basis for payment of BT contracts. The reason is that the project is in a transitional case according to the provisions of the Law on Investment under the public-private partnership method; Resolution No. 98/2023 of the National Assembly and Decree No. 35/2021 of the Government.

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The 10,000 billion VND flood prevention project has been nearly 7 years behind schedule. Photo: Hoang Giam.

Based on the above, the City People's Committee proposes to adjust the payment terms in the contract in parallel with the overall adjustment of the project.

Specifically, simultaneously carry out the procedure to adjust the project implementation time as a basis for signing the BT Contract Appendix to change the payment method. After adjusting the BT Contract Appendix, the project basically overcomes the shortcomings stated in Article 1, Resolution 40/2021.

This is the basis for Ho Chi Minh City to start making payments using land funds, which are the land plots identified in the BT Contract, to solve the capital source for investors to complete the project and reduce the cost of interest incurred while waiting for the completion of project adjustment procedures.

Previously, the Ho Chi Minh City People's Committee also reported to the Prime Minister the above problems and proposed solutions to resolve this project.

The 10,000 billion VND flood prevention project is invested by Trung Nam Construction Investment Joint Stock Company, implemented by Trung Nam BT 1547 Company Limited. This is a group A project with the form of public-private partnership (PPP) investment. The type of contract is build-transfer (BT), payment is made by land fund and city budget.

Construction began in June 2016 and is expected to be completed after two years of construction, with the aim of controlling flooding caused by high tides and proactively responding to climate change for an area of ​​570 square kilometers with about 6.5 million people in the right bank of the Saigon River and the center of Ho Chi Minh City.

The project includes the construction of 6 large tide control sluices with widths ranging from 40-160m, 3 pumping stations and 7.8 km of dykes/reves along the Saigon River from Vam Thuat to Kinh River in vulnerable sections...

Up to now, after more than 9 years of construction, the project has not yet reached the finish line, meaning it is 7 years behind schedule, even though it has reached 90% of the work volume.

Ho Chi Minh City presents to the Prime Minister solutions to remove obstacles in the 10,000 billion VND flood prevention project

Ho Chi Minh City presents to the Prime Minister solutions to remove obstacles in the 10,000 billion VND flood prevention project

Ho Chi Minh City has pointed out three difficulties and obstacles in the implementation of the nearly VND10,000 billion flood prevention project and submitted to the Prime Minister a solution to help the "super project" to prevent flooding to be completed soon.
The 10,000 billion VND flood prevention project will be completed after 8 months if obstacles are removed.

The 10,000 billion VND flood prevention project will be completed after 8 months if obstacles are removed.

The 10,000 billion VND flood prevention project, although over 90% completed, had to stop construction due to difficulties in payment capital.
Ho Chi Minh City Secretary talks about the progress of the 10 trillion VND flood prevention project

Ho Chi Minh City Secretary talks about the progress of the 10 trillion VND flood prevention project

Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen said that the flood prevention project will be put into operation as planned by the end of this year, but there is no specific time frame for when it will be completed. The Standing Committee will be more drastic in inspecting and supervising the project.