According to the Department of Investment and Planning in Ho Chi Minh City, priority will be given to ongoing traffic projects so as to allow them to complete as per schedule and prevent any increase in investment costs.
|A residential house being demolished to make way for construction of the HCMC-Long Thanh-Dau Giay Highway in District 2 (Photo: SGGP)|
The Department made this announcement at a meeting on November 13 with the Economics-Budget Committee of the City People’s Council and other related departments, to discuss capital resources for traffic projects in the City.
The ongoing traffic projects include Roads 10 and 10B, Hanoi Highway, Urban Railway Route No.2, HCMC-Long Thanh-Dau Giay Highway and Tan Son Nhat-Binh Loi Outer Belt Road.
At present the City has too many toll stations, making it difficult to invite investors to adopt the BOT (Build-Operate-Transfer) method. The BT (Build-Transfer) method also meets with some difficulties as the remainder of the available land fund is insufficient.
The Department of Finance has proposed to the Department of Transport to closely monitor contractors and the progress on projects, to ensure they complete as per schedule so as to stay within the investment capital budget.
Pham Van Dong, head of the Economics-Budget Committee, said that localities must move faster in handing over land for construction of the projects.
According to the committee, the City has already released VND2,239 billion (US$107.47 million) for traffic projects in the last ten months, which covers 75 percent of the existing projects.
The Department of Transport has asked for another VND1 trillion (US$48 million) for the next installment.