The result of delays in a HCM City infrastructure project is likely to increase its cost to over VND7 trillion.
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| Slow construction has raised the project\'s investment capital |
The project includes construction of Binh Trieu 2 Bridge, expansion of National Highway 13 running through Binh Thanh and Thu Duc districts. The project has not yet been finished despite having been under construction for 10 years. The municipal Department of Transport now has to seek the People’s Committee’s approval to increase the project’s total investment capital to VND7 trillion (USD343.4 million).
The contract was first given to Civil Engineering Construction Company No.585 (Cienco 5) under a build-operation-transfer (BOT) agreement, and the firm broke ground in late 2000.
Having completed two phases of construction on the Binh Trieu 2 Bridge, and expanding some of the routes around Mien Dong Station, Cienco 5 withdrew from the agreement after the city asked them to increase the width of National Highway 13 by 21 metres more than the original plans. Cienco 5 said this was not financially viable.
In 2008, Ho Chi Minh City Infrastructure Investment Joint Stock Co (CII) took over a large portion of the project, which had been divided into several parts. CII took over parts 1 through 5, while the People’s Committees of Thu Duc and Binh Thanh were to be responsible for the site clearance of parts 6 and 7.
To date, CII has finished only two of the five sub-projects, and the site clearance has not yet been completed, as the committees are still waiting on approval for financing resettlement compensation.
Due to the faltering pace of construction, the city’s Department of Transport has asked local People’s Committee to seek the prime minister’s permission to adjust the investment capital of some of the sub-projects. If the proposal is approved, the projects total capital investment would be brought to around VND7 trillion.
Intersections between Binh Trieu 2 Bridge and National Highway 13 are among spots most clogged with traffic in Ho Chi Minh City.
Slow construction has added to the city’s traffic problems.
