Due to higher land clearance costs and the addition of new interchanges, the total investment for the Bien Hoa - Vung Tau Expressway construction project is expected to increase by approximately VNĐ5.4 trillion (US$217.4 million) compared to the initial approved estimate, the Ministry of Transport has announced.
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| The Sub-project 3 of the Biên Hòa-Vũng Tàu Expressway passing Phu My Town in the southern Ba Ria - Vung Tàu Province is under construction. VNA/VNS Photo Hoang Nhi |
In a report submitted to the National Assembly (NA) on the investment for the project's first phase, Minister of Transport Nguyan Van Thang stated that the first phase of the expressway will span 53.7 kilometres, with 4-6 lanes planned and an investment of over VND17.82 trillion ($717.5 million).
The goal is to complete and integrate the expressway with the eastern section of the North - South Expressway and Long Thanh International Airport, while also connecting major economic and port centres.
The project is divided into three sub-projects, all funded by public investment. Sub-project 1, managed by Dong Nai Provincial People’s Committee, covers approximately 16 kilometres at a preliminary investment of over VND6.01 trillion ($241.9 million).
Sub-project 1 includes two construction packages, which began in June 2023. However, only 38.4 per cent of the 137.64 hectares of required land has been handed over, limiting construction to a few bridge structures and prefabrication of components.
Sub-project 2, overseen by the Ministry of Transport, spans approximately 18.2 kilometres with a preliminary investment of over VND6.85 trillion ($275.8 million). Two construction packages for this sub-project are also underway. To date, 58.05 per cent of the 176.74 hectares of land needed has been cleared, allowing work to begin on some bridge structures, underpasses, drainage systems and a few road sections.
“For sub-projects 1 and 2 in Dong Nai Province, construction progress has not met expectations due to delays in land handover,” Thang noted.
Sub-project 3, managed by the Bà Ria - Vung Tau Provincial People’s Committee, covers 19.5 kilometres with one construction package and a preliminary investment of over VND4.96 trillion ($199.7 million). The entire site for Sub-project 3 has been handed over, and contractors have begun work across the project, meeting the required progress goals.
According to Government Resolution No90/NQ-CP issued on July 25, 2022, localities were expected to hand over 70 per cent of the land for construction packages by the end of last June and to complete land clearance by the end of last December.
However, in reality, only sub-project 3 has met the land clearance requirements.
Meanwhile, compensation and resettlement efforts for the sub-projects in Dong Nai Province have been progressing very slowly.
According to reports from localities, land clearance costs for the sub-projects have increased by approximately VND3.26 trillion ($131.2 million) compared to the estimates in the total investment approved under NA Resolution 59/2022/QH15.
Specifically, sub-project 1 will see an increase of VNĐ120 billion ($4.8 million), sub-project 2 an increase of over VND1.27 trillion ($51.1 million) and sub-project 3 an increase of over VND1.87 trillion ($75.2 million).
"The rise in land clearance costs has led to the total project investment exceeding the initial estimate approved by the NA, necessitating adjustments to the investment policy," Thang said.
Meanwhile, for sub-project 3, the Ba Ria - Vung Tau Provincial People’s Committee has proposed adding the My Xuan - Ngai Giao interchange to enhance transportation capacity and connect the Cai Mep - Thi Vai Port area with Long Thanh International Airport.
This addition would increase costs by an estimated VNĐ1.58 trillion ($63.6 million), including VND768 billion for construction and VNĐ813 billion for land clearance.
As a result, the total project investment is expected to increase by around VNĐ5.4 trillion.
The Ministry of Transport is currently conducting an internal assessment of the project’s adjusted investment policy and preparing to submit it to the relevant authorities as required.
On this basis, the Government has requested the NA and the NA's Standing Committee to address the ongoing issues related to land clearance, resettlement and the relocation of technical infrastructure.
The Government also emphasised the need for solutions to the shortage of construction materials to ensure the project can go ahead as planned.
Furthermore, it has called for close coordination between the Ministry of Transport and other relevant ministries and agencies to strengthen management and supervise the project’s implementation in compliance with legal regulations.
The Government has also requested that the NA consider and approve the project's adjusted investment policy to ensure the availability of capital.
(Source: VNS)
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