HCMC – The Ministry of Planning and Investment has written to the prime minister proposing approving the revised investment policy for the Water Environment Improvement Project in HCMC in the river basin of Tau Hu – Ben Nghe – Doi – Te (phase 2), pushing back the project’s completion date to December 2023 instead of June 2022.
The Water Environment Improvement Project in HCMC in the river basin of Tau Hu – Ben Nghe – Doi – Te – phase 2 has a total investment of VND11,281 billion. Of which, over VND9,831 billion is funded by Japan’s ODA and the remainder is local reciprocal capital.
The project has been carried out since 2010 and was scheduled to be completed in June 2022.
The project encompasses six construction and installation packages aimed at completion of the rainwater drainage system, and resolving hygiene issues for lower areas of the city and the neighboring areas in the river basin of Tau Hu – Ben Nghe – Doi – Te. Besides, the project is expected to improve environmental hygiene conditions by building and developing a waste water collection and treatment system.
The project has been 80% completed, which is still behind schedule. The delay is attributed to the impact of the Covid-19 pandemic, shortage of construction material and price hike of materials. In addition, some packages on the high traffic density roads must be executed at night time.
The rising costs resulting from the project’s extension will not exceed the approved total investment capital and will be borne by HCMC.
According to the Ministry of Finance, the request for extension of the project till the end of 2026 including warranty and completion settlement time will not affect the time-limit of the project’s disbursement and principal repayment.
This is the third time that HCMC has requested for extension of project, so the city should commit to complete the project according to the revised schedule if this is approved by the prime minister.