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Ho Chi Minh City
Monday, May 23, 2022

Investment in many traffic projects to be reviewed

The Saigon Times

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HCMC – The Ministry of Transport has asked the investors and management boards of many traffic infrastructure projects for the 2021-2025 period to review these projects.

Under the mid-term public investment plan of the Ministry of Transport, work on 64 projects would start, comprising four national key projects, nine projects in group A and 51 others in groups B and C, the local media reported.

To date, 48 projects have been approved, including the North-South Expressway project in the 2021-2025 period, the Rach Mieu 2 Bridge and the My An-Cao Lanh Expressway.

According to the Ministry of Transport, some investors and management boards of projects have complained about the recent surge in the prices of fuels and building materials, which have resulted in cost overruns in their projects.

Therefore, the ministry required the investors and management boards of the projects to review and update the investment in projects in line with the current material prices.

If there is a cost overrun in projects, their investors and management boards should propose solutions to suspend the projects which are not urgent and instead spend capital on other key projects.

Projects can also be divided into phases or have their scale revised down. In addition, the budgets of localities where projects are developed should be tapped to ensure capital for the projects, but the use of local budgets must be in line with the law, ensure efficiency and prevent wastefulness.

As for projects which have yet to be approved, the Ministry of Transport asked the investors and management boards of projects to review and update the estimated costs in line with the current prices.

If the capital needed in the 2021-2025 period is larger than the capital planned to be allocated, investors and management boards should propose revising the scale of projects, dividing projects into phases or using both the State and localities’ budgets.

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