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Sunday, October 24, 2021

Thu Thiem 2 Bridge project at risk of suspension

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HCMC – Work on the Thu Thiem 2 Bridge project connecting District 1 and Thu Thiem Peninsula in District 2 in HCMC may be suspended as the project’s investor has had difficulty with financial arrangement.

Dai Quang Minh Real Estate Investment Company is developing the project under the build-transfer (BT) format. Work on the six-lane bridge started in 2015 and was slated for completion in 2018, with a total investment of VND3.8 trillion. However, the 1.4-kilometer-long bridge has faced multiple obstacles and was rescheduled for completion in September 2021.

The investor said in its report that lenders had refused to disburse capital for its BT projects including Thu Thiem 2 Bridge, as the city had made slow payments to the investor. As a result, the investor may have to suspend the construction of the bridge if the financial issue was not addressed.

From now until the end of the year, the investor planned to disburse over VND1.1 trillion to contractors for the bridge to be opened to traffic.

The investor had written to the municipal government and relevant departments proposing the city consider making payments for it through the issuance of land use right certificates for BT projects, so the construction work can continue. However, the proposal is yet to be considered.

Up to now, Dai Quang Minh has paid some VND2.15 trillion as part of investment for the bridge. Of this amount, the investor submitted VND800 billion to the State budget in April 2014 and spent VND1.35 trillion to construct the bridge.

Besides this, to pay off debts and other costs to develop the BT projects, Dai Quang Minh had to borrow some VND7.5 trillion from its parent company, THACO, including VND2.15 trillion for Thu Thiem 2 Bridge. However, the impact of the coronavirus pandemic prevented the investor from taking out further loans from THACO.

A representative of Dai Quang Minh said the investor also proposed that the city resolve the problems this month. In addition, the investor will try to find a way to cope with the difficulties and complete the bridge project as planned.

As for the city, Ha Phuoc Thang, chief of the HCMC People’s Committee Office, announced on September 21 that the city’s government planned to convene a meeting on September 25 to discuss solutions to remove obstacles facing infrastructure projects, including Thu Thiem 2 Bridge.

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