Important Infrastructure Projects in HCMC and at the nationwide in 2022! (Cont)

Following up with previous parts regarding Infrastructure Projects, in this email, we’ll cover the Key Infrastructure Projects Nationwide.

5 important national transport projects of more than VND 250,000 billion (~USD 11 billion) are about to be submitted to the National Assembly:

• Ring Road 3 HCMC
• Ring Road 4 – Hanoi area
• Khanh Hoa – Buon Ma Thuot Expressway
• Bien Hoa – Vung Tau Expressway
• Chau Doc – Can Tho – Soc Trang Expressway

Deputy Prime Minister Le Van Thanh has just chaired a meeting on transport infrastructure projects in the economic recovery program, with the participation of 22 provinces and cities online

Reporting on the situation of preparing for investment in new highway projects to start construction in the period 2021 – 2025, leaders of the Ministry of Transport said that the Ministry is trying to complete the procedures to promptly submit to the National Assembly for investment decision in 5 important national projects at the next meeting.

Accordingly, the main milestones to be met include: completing the pre-feasibility study report and submitting it to the Prime Minister before February 13; complete procedures for the Prime Minister to issue a decision to establish a state appraisal council before February 16; the state appraisal council shall organize the appraisal, get the appraisal results before March 4 and complete the submission to the National Assembly on investment policies before March 20.

Ring Road 4 – Hanoi area project has a total length of 111.2km with an estimated total investment of VND 94,127 billion (~USD 4,2 billion). Structure of capital sources is from central budget, local budget, investor’s capital and other lawfully mobilized capital sources.

The Ring Road 3 in Ho Chi Minh City is nearly 92km long, with a total investment of VND 75,777 billion (~USD 3,3 billion) in phase 1, of which the cost of compensation and resettlement support is VND 41,872 billion (~USD 1,8 billion).

According to the leader of the Ministry of Transport, in order to synchronize with the submission to the National Assembly for decision on investment policy on May 22, group A projects need to be approved before the meeting.

Emphasizing that this is an opportunity for the economy, as well as localities to perfect the transport infrastructure, the Deputy Prime Minister gives an example that one term of the transport sector can be allocated VND 300,000 – 400,000 billion (~USD 13-17 billion), but for expressway development is only about VND 70,000 billion (~USD 3 billion), while the total resources for expressway in this period amount to VND 300,000 – 400,000 billion (~USD 13-17 billion).

However, according to the Government leader, the big difficulty in the process of highway development is the stage of site clearance, construction materials… Especially, within 2 years, all the capital must be disbursed by economic recovery program which has been arranged. In the period from now to 2025, the construction of an additional 2,000km of highways must be completed.

The Deputy Prime Minister requested the ministries, branches and localities to urgently complete the construction investment preparation on schedule, ensure quality and be eligible to submit to the National Assembly for approval at the May 2022 meeting; Concurrently start construction in 2022, complete in 2024 – 2025.

“If these milestones are not ensured, we will not be able to disburse all the allocated capital and miss the opportunity for development,” the Deputy Prime Minister emphasized.

For the project of Ring Road 3 in Ho Chi Minh City and Khanh Hoa – Buon Ma Thuot Expressways, Bien Hoa – Vung Tau Expressways, Chau Doc – Can Tho – Soc Trang Expressways, urgently set up a state appraisal council, completing the appraisal in February 2022.

For localities, the Deputy Prime Minister requested early preparation, assigning directors of departments to survey and evaluate on the basis of close coordination with the Ministry of Transport to determine the source of construction materials. Localities are only allowed to exploit construction materials directly for highway construction contractors, without intermediaries.

In addition to construction materials and contractor capacity, the construction progress is fast or slow depending on the progress of site clearance. The Deputy Prime Minister asked localities to take steps in parallel, shortening the progress of compensation and site clearance.

“The Government and the Prime Minister are determined and will accompany localities to ensure quality, complete on schedule the work of preparing for investment in the construction of new highway sections and routes, speeding up the progress, deploying sections of expressways that have been approved for investment policy,” the Deputy Prime Minister affirmed.

Worry of a behind schedule Long Thanh airport

Along with the above key projects, Long Thanh airport also attracts a lot of attention from the whole country. However, after more than a year of construction, Long Thanh airport is still just an empty land, not yet seeing the atmosphere of the great construction site.

In 2023, Dong Nai will build 3 routes connecting Long Thanh airport: DT 769, DT 770B and DT 773 are projects connecting many national highways, highways and districts and cities of Dong Nai with Long Thanh airport

On January 5, 2021, the Long Thanh International Airport project was started after many years of preparation and site clearance. This is the time to mark the start of component projects in phase 1 invested by Airports Corporation of Vietnam (ACV), including: demining, leveling, connecting roads, runways, passenger terminals and ancillary aviation infrastructure…

However, after a year, when the fence and demining works were basically completed, the ground leveling has not been done, making the project progress dangerously behind schedule. Government leaders have continuously made inspection visits in the past two months to urge and direct.

Phase 1 of Long Thanh airport has largely been cleared, but the construction site is still less active than planned. Photo: Phuoc Tuan

On February 6, Prime Minister Pham Minh Chinh, while observing and listening to the progress report of the project, pointed out that the organization and working of the project is not good. Long Thanh International Airport is a big and national key project, but so far many things have not been put into operation smoothly. “The project management board has not come to the workplace, will the project be completed in four years?”, the Prime Minister asked.

According to Mr. Lai Xuan Thanh, Chairman of ACV’s Board of Directors, after the Prime Minister’s direction, ACV cooperated with consultants to immediately organize the review and overall assessment to ensure the shortening of the progress. It is expected that in December 2024, the project will complete the construction of airport infrastructure; March 2025 completed construction of the station. After that, stakeholders enter the phase of articulating component projects and synchronously commissioning the entire project.

For the construction of main items such as the airport, the terminal, ACV will organize a tender to select the general contractor to ensure the synchronization and smooth connection from the very beginning, contributing to reducing the project implementation time.

Prime Minister Pham Minh Chinh listens to the construction unit of the Long Thanh airport project reporting on the overall planning and construction progress of the items, on February 6. Photo: Nhat Bac

In addition to the above investment and port construction items, the site clearance work invested by the People’s Committee of Dong Nai province starting from 2017 is also said to be behind schedule (completed before December 31, 2021).

Long Thanh District People’s Committee said that so far, the locality has approved the compensation and support plan for 5,464 cases on 5,541 households and individuals with a land area of ​​more than 2,300 hectares out of a total of more than 2,900 hectares of land owned by personal use. Currently, more than 1,000 cases with an area of ​​more than 281 hectares are continuing to complete the procedures for land acquisition, compensation and support.

For the land area of ​​more than 1,900 hectares used by organizations, so far Dong Nai has completed the acquisition of 16 organizations. Currently, the remaining land area of ​​more than 56 hectares of the two organizations has not yet completed land acquisition.

Regarding land handover, Dong Nai has handed over nearly 1,500 hectares out of a total of more than 2,500 hectares (including 1,810 hectares for airport construction and 722 hectares for redundant land reserve areas) for the construction of Long Thanh airport in the phase first.

Vice Chairman of Dong Nai Provincial People’s Committee Vo Tan Duc said that the province is committed to handing over the entire area for construction of Long Thanh airport in phase 1 in the first quarter of 2022 and the entire area of ​​the following project in 3 months later.

Deputy Minister of Transport Le Anh Tuan said that in order to speed up the progress, the Ministry has directed ACV to request contractors to immediately receive and carry out the construction. The highest goal is to shorten the schedule and complete it as soon as possible to accelerate the project.

“Recently, many relevant units have not been aware of this problem, so the Prime Minister has criticized it very harshly. The ministry is asking ACV to overcome those shortcomings,” said Mr. Tuan.

Long Thanh International Airport has a capacity of 100 million passengers and 5 million tons of cargo per year. Estimated total project investment capital is about VND 336,630 billion VND (~ USD 16 billion). In which, phase 1 invested VND 114,450 billion VND (~USD 5.45 billion), expected to be completed and put into operation in 2025.

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