The Department of Planning and Investment of Ho Chi Minh City was assigned to urgently preside over and coordinate with relevant departments, branches and units to review and resolve the requests of investors of the 10,000 billion VND flood prevention project.
Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong (second from right) during a field visit to the 10,000 billion VND flood prevention project
The Office of Ho Chi Minh City People's Committee has just sent a document to the Department of Planning and Investment of Ho Chi Minh City conveying the direction of Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong on resolving difficulties related to the project to solve tidal flooding in Ho Chi Minh City area taking into account climate change factors, phase I, worth 10,000 billion VND (10,000 billion VND flood prevention project).
Accordingly, Mr. Cuong assigned the Department of Planning and Investment to urgently preside over and coordinate with relevant departments, branches and units to review and resolve the proposals of Trung Nam Construction Investment Joint Stock Company in the document this unit sent to Deputy Prime Minister Tran Luu Quang on February 26, 2024.
At the same time, properly implement the direction of Deputy Prime Minister Tran Luu Quang in the official dispatch of the Government Office dated March 7, 2024.
The Department of Planning and Investment sent advice, proposals and draft documents of the City People's Committee to report to the working group before March 13.
Previously, on March 7, the Government Office issued an official dispatch conveying the opinions of Deputy Prime Minister Tran Luu Quang, head of the working group to remove obstacles to the 10,000 billion VND flood prevention project in Ho Chi Minh City.
The Deputy Prime Minister directed the Chairman of the Ho Chi Minh City People's Committee and the Deputy Head of the Working Group to promptly carry out assigned tasks to resolve problems related to the 10,000 billion VND flood prevention project and report to the Working Group before March 15.
At the same time, the Chairman of the City People's Committee proactively directed relevant agencies of the City to review and handle the proposal of Trung Nam Construction Investment Joint Stock Company.
In a document sent to Deputy Prime Minister Tran Luu Quang on February 26, Trung Nam Construction Investment Joint Stock Company stated that on November 5, 2023, the Government Office announced the conclusion of Deputy Prime Minister Tran Luu Quang directing the review and removal of problems in the implementation of the flood prevention project in the Ho Chi Minh City area.
Since the Government working group met and announced its conclusion, more than 3 months have passed but the project has not been able to restart, although the investor has sent many petitions to the City Party Committee and the City People's Committee for early direction to implement the work under the authority of the City People's Committee.
Therefore, the company recommends that the Deputy Prime Minister pay attention to supporting and directing the project to resume construction soon, complete and put into operation, promote investment efficiency, and avoid the current huge daily interest losses.
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Opinions on the plan to remove capital obstacles for the 10,000 billion VND flood prevention project
- In December 2023, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong directed relevant units to advise the City on capital sources to remove obstacles for the 10,000 billion VND flood prevention project.:
- According to the report on the implementation results of Resolution No. 40 of the Government related to the 10,000 billion VND flood prevention project, Ho Chi Minh City proposed three options to remove obstacles for the project:
- Option 1: The City will pay the investor for the completed volume in parallel with land and cash, in accordance with the agreed payment schedule.
- Option 2: The City Development Investment Fund (HFIC) will lend from its operating capital. This option is advantageous when HFIC can proactively lend to investors to complete the construction.
- Option 3: HFIC will receive the trust to lend the project from the city budget according to the provisions of Decree No. 147 issued by the Government in 2020. Specifically, the city will entrust the budget (about 1,800 billion VND) to HFIC so that HFIC can lend to the investor to complete the project.
After the project is accepted, the city will pay the investor according to the BT contract and the signed BT contract appendices. From there, the investor will pay the debt to HFIC. HFIC will repay the city budget for the entrusted capital.
Through analyzing the three options, Ho Chi Minh City finds that option 3 is the most feasible option, with a basis for implementation. The City People's Committee has requested relevant units to clearly report for implementation.
In January 2024, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong continued to chair the meeting to listen to reports on the financial plan, land fund for payment and implementation of the conclusions and recommendations of the State Audit related to this project. However, the Department of Finance believes that the entrustment plan is not in accordance with the regulations as stated by the Ministry of Finance. Therefore, the Department has no basis to advise on the entrustment plan. The Department also requested the City Development Investment Fund (HFIC) to clarify which unit will advise the City People's Committee to issue the entrustment decision.
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According to Tien Long - Tuoi Tre Newspaper