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Tuesday, November 29, 2022

Funding shortfall leaves Ben Luc-Long Thanh Expy suspended

The Saigon Times

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HCMC – The slow pace of capital disbursement has impeded the progress of the Ben Luc-Long Thanh Expressway project, leaving it unable to meet deadlines. 

The construction value of the project has reached an estimated VND11 trillion, equivalent to some 80% of the construction volume, Vietnam Expressway Corporation (VEC) reported.

The project’s total investment is VND31.32 trillion, using loans of over VND13.6 trillion from the Asian Development Bank, nearly VND12 trillion from the Japan International Cooperation Agency and nearly VND5.7 trillion from domestic reciprocal funds.

However, legal procedures have hindered the capital disbursement, putting some construction bidding packages under suspension, said Pham Hong Quang, general director of VEC.

Thus, VEC proposed the government extend the deadline for the project to September 30, 2025, and allow it to raise funds on its own to carry out the project.

Recently, National Assembly Chairman Vuong Dinh Hue said during a project inspection that the National Assembly’s Standing Committee and the Government had focused on removing hurdles.

Accordingly, the National Assembly’s Standing Committee asked the Ministry of Transport to allocate foreign official development assistance and concessional loans to the project.

The Ben Luc-Long Thanh Expressway broke ground in mid-2014 and was scheduled for completion in 2019. The expressway is 57.8 kilometers long, connecting HCMC and the neighboring provinces of Dong Nai and Long An.

On July 22, 2020, the prime minister issued Decision 1131, extending the deadline to complete the project to December 31, 2023. 

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