Ho Chi Minh City

HCMC proposes ministries to supply more finance to urgent projects

SGGP
The HCMC People’s Committee has proposed the Ministry of Planning and Investment and the Ministry of Finance to use official assistance development (ODA) funds for urgent projects in the city.

An under construction tunnel of Ben Thanh-Suoi Tien metro line in HCMC (Photo: SGGP)

An under construction tunnel of Ben Thanh-Suoi Tien metro line in HCMC (Photo: SGGP)

Specifically, the city’s first metro line Ben Thanh-Suoi Tien needs an additional capital of VND3.3 trillion (US$145.17 million) and the second phase of HCMC environmental hygiene project needs VND300 billion (US$13.2 million).
The city People’s Committee has reported the capital demand of the two projects in July and September this year.
According to the committee, the first metro project needs over VND5,420 billion (US$238.44 million) this year.
However, it nears only VND2,120 billion in the capital allocation plan of the central budget this year. Investors have used up the amount right after the city received it. Afterwards, HCMC must advance an extra of VND500 billion ($22 million) on its budget but the advance is still insufficient to pay contractors.
At a meeting with Prime Minister Nguyen Xuan Phuc in June, HCMC proposed the PM to consider an advance of VND3.3 trillion on the central budget for the first metro line to speed up progress and build the project by 2020 as per schedule.
On July 5, the Government Office sent a document announcing the Prime Minister’s conclusions about the working session. Of these, he agreed with the ODA capital advance as per proposal by HCMC.
He has assigned the Ministry of Planning and Investment and the Ministry of Finance to have specific proposals and report to the PM before July 30. Still the project has yet to receive supplementary capital. Investors have no funds to make payment so many contractors have extended progress, stopped construction and even sued the investors.

By KIEU PHONG – Translated by Hai Mien

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