A number of build-transfer (BT) projects in Hanoi are incurring lots of problems and need re-planning due to capital shortage or site clearance issues.
Intelligentsia Palace has yet to complete a balance sheet
The municipal Department of Planning and Investment said the capital has caused delays to 63 BT projects. Of the total, 12 projects are underway, 20 have selected investors, 25 got approval from the prime minister but yet to find investors and six have good chances for their proposals.
To date, only five projects have been completed, of which four have been put in operation since October 2010, including the Hanoi Museum, Tri Thuc or Intelligentsia Palace, Bac Ha Dong Road and extended Le Van Luong Road. Yen So Wastewater Treatment Plant was completed last year and should be handed over to local authorities soon.
Of those five completed projects, only the Intelligentsia Palace has completed the auditing.
Among seven projects that have signed construction contracts, five have started building. Due to slow site clearance, construction of several projects has been stagnant including Bac-Nam road route in Ha Tay, Le Duc Tho – Xuan Phuong road route, and the Do Xa – Quan Son road.
The same situation exists for the Hanoi Museum
The department said total investment of some of such projects would have to be adjusted or some provisions of the contracts may have to be changed to accelerate the construction.
The department attributed the stagnant construction to the impact of the economic downturn, hindering capital mobilisation.
The slump in the real estate market has also affected the construction of new urban areas and apartment buildings, impeding the implementation of such BT infrastructure projects.
Urban and satellite planning have yet to be approved, which hindered the scope of several BT projects, the department noted.
The lack of cooperation between contract management agencies and investors as well as slow site clearance has also affected the construction process of these projects.
The department proposed that the municipal government to require the contract management agencies of five completed projects to speed up the completion of a balance sheet.
