Proposal for Central budget to support 39,827 billion VND to build Ring Road 4, Ho Chi Minh City
Localities with the Ho Chi Minh City Ring Road 4 project passing through them agreed to propose the central budget to support 39,827 billion VND out of a total of 128,063 billion VND to invest in the Ho Chi Minh City Ring Road 4.
Localities want central budget to support 39,827 billion VND
On August 31, Chairman of Ho Chi Minh City People's Committee Phan Van Mai signed Document No. 5100/UBND-DA to the Prime Minister regarding the submission of the Pre-Feasibility Study Report for the Project to build Ring Road 4, Ho Chi Minh City.
According to the report, up to now , Ho Chi Minh City and the provinces of Ba Ria - Vung Tau, Dong Nai, Binh Duong, Long An have organized and basically completed the pre-feasibility study report of the Ring Road 4 Project, Ho Chi Minh City.
The project has a total length of 207 km, of which the section passing through Ba Ria - Vung Tau province is 18.2 km; Dong Nai 45.5 km; Binh Duong 47.4 km; Ho Chi Minh City 17.3 km; Long An 78.3 km.
In phase I, 4 expressway lanes will be built, with continuous emergency lanes arranged along the entire route. The number of interconnecting intersections on the route is 23.
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| Route map of Ring Road 4, Ho Chi Minh City. |
The total estimated investment of the Ho Chi Minh City Ring Road 4 Project is 128,063 billion VND. Of which, it is expected that the central budget will support 39,827 billion VND, the local budget will be 30,882 billion VND, and the rest will be from investors.
The capital portion going through each locality of Ho Chi Minh City is 14,089 billion VND, estimated local budget capital is 7,185 billion VND; investor capital is 6,903 billion VND.
The section through Ba Ria - Vung Tau province costs 7,972 billion VND, with central budget capital of 1,982 billion VND; local budget capital of 1,982 billion VND; investor capital of 4,007 billion VND.
The section through Dong Nai province has an investment capital of 19,151 billion VND, of which the central budget capital is expected to be 4,602 billion VND; local budget capital is 4,602 billion VND; and investor capital is 9,946 billion VND.
The section through Binh Duong province costs 19,827 billion VND, with estimated central budget capital of about 4,784 billion VND; local budget capital of about 4,787 billion VND; and investor capital of about 10,259 billion VND.
The section through Long An province alone has the largest investment capital of about more than 67,000 billion VND, with estimated central budget capital of 28,458 billion VND; local budget capital of 12,328 billion VND; and investor capital of 26,238 billion VND.
To soon invest in this important project, localities proposed to allocate 15,843 billion VND for the 2021-2025 period, with the central budget expected to be about 8,407 billion VND and the local budget about 7,435 billion VND.
For the 2026-2030 period, about 54,800 billion VND will be allocated, of which 31,420 billion VND will be from the central budget and 23,447 billion VND from the local budget.
Propose a series of specific mechanisms to carry out the project
According to the Ho Chi Minh City People's Committee, Ho Chi Minh City Ring Road 4 is very important because it is an inter-regional traffic connection route that solves the circulation of goods, reduces logistics costs, and contributes to the economic and social development of localities in the region.
Therefore, localities unanimously proposed that there should be specific mechanisms and policies to quickly invest in this Project.
The first proposed mechanism is to assign the provincial People's Committee as the governing body, allowing it to use local budgets and other legal capital sources to invest in projects on Ho Chi Minh City's Ring Road 4.
A new mechanism proposed for the first time is to use the budget of one locality to support another locality to invest in public projects passing through two localities such as the bridge bordering Ba Ria - Vung Tau province and Dong Nai province, Thu Bien bridge bordering Dong Nai province and Binh Duong province.
The next proposed mechanism is for the central budget to support Binh Duong, Dong Nai and Ba Ria – Vung Tau provinces with 50% of the total state budget capital participating in the project. For Long An province alone, the central budget will support 75% of the total state budget capital participating in the project.
Localities also proposed allowing the total investment value of Ring Road 4 projects of each locality to be transferred to the medium-term public investment plan for 2026 - 2030 not to be added to the total investment value of programs and projects that must be implemented in the next medium-term public investment plan of each locality (stipulated in Clause 2, Article 89 of the 2019 Law on Public Investment).
A series of other mechanisms have also been proposed, such as allowing localities to update and adjust planning projects before competent authorities approve the Feasibility Study Report; allowing the appointment of contractors for consulting packages, technical infrastructure relocation packages, compensation, support, and resettlement packages, etc.
In addition, localities also proposed a mechanism for exploiting minerals as common construction materials; a mechanism for managing projects after investment and settling investment capital.
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