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Tuesday, June 25, 2024

Bien Hoa-Vung Tau Expressway faces higher land clearance costs

By Nguyen Tan

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HCMC – The costs allocated for clearing land in preparation for the Bien Hoa-Dong Nai Expressway project have soared by VND3.7 trillion compared to the original plan.

The Ministry of Transport said that the costs for components 1 and 2, which pass through Dong Nai Province, had edged up by VND2,684 billion, while component 3 in Ba Ria-Vung Tau Province increased by VND990 billion.

The original costs for components 1 and 2 were VND6 trillion and VND6.8 trillion, while that for component 3 was nearly VND5 trillion.

These cost overruns resulted primarily from discrepancies between the estimated costs for site clearance outlined in the feasibility study report and the actual land prices at the time of measurement and compensation.

Delays in the handover of cleared land in Dong Nai Province, with only 7% handed over to component 1 and 19.74% to component 2, have hindered the project progress.

The relocation of existing technical infrastructure systems, such as power transmission lines and water supply systems, is also a challenge for investors.

The 54-km Bien Hoa-Vung Tau Expressway project has three components, with the first having a total length of 16 km in Dong Nai and carried out by the government of Dong Nai, the second having a total length of 18.2 km in Ba Ria-Vung Tau Province and executed by the Ministry of Transport, and the third having a total length of 19.5 km in Ba Ria-Vung Tau and implemented by the government of Ba Ria-Vung Tau.

The VND17.8-trillion project will connect the National Highway 1A by-pass in Bien Hoa City and National Highway 56 in Ba Ria-Vung Tau Province.

The expressway is expected to be completed in late 2025 and opened to traffic in 2026.

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