Proposal to increase total investment of Tan Van - Nhon Trach project

Adjusting the project's investment scale to ensure exploitation according to highway standards leads to an increase in the total investment and total ODA loan capital - Photo: Giao thong Newspaper

The Ministry of Construction has just sent a document to the Ministry of Finance requesting to adjust the project proposal using ODA capital for Component Project 1A of the Tan Van - Nhon Trach section construction investment project, phase 1, of Ho Chi Minh City Ring Road 3.

According to the Ministry of Construction, the project using ODA loans from the Korean Government was approved by the Prime Minister to adjust the investment policy in Decisions No. 25 dated January 6, 2020 and No. 526 dated April 27, 2022 with a total investment of more than VND 6,955 billion. The project has a route length of about 8.75km, the scale of the route is equivalent to a level III plain road, the design speed is 80km/h, including 4 motor vehicle lanes and 2 mixed lanes.

ODA loans from the Korean Economic Development Cooperation Fund (EDCF) are expected to be over VND4,175 billion (equivalent to about USD190.77 million2) used to pay for construction and equipment costs; technical design consulting and construction supervision costs, and ODA capital reserves.

The counterpart fund is expected to be over VND 2,779 billion, used to pay VAT, project management costs, domestic consulting costs; site clearance costs; reserve counterpart funds, service fees. Implementation period: 5 years from the effective date of the Loan Agreement for Component Project 1A (from September 2020 to September 2025).

Adjust the scale

Implementing the direction of the Prime Minister, to ensure the ability to exploit the section with the scale of the expressway in sync with other component projects on the Ho Chi Minh City Ring Road 3 according to the planning, it is necessary to adjust the scale and invest in additional construction items, leading to an increase in the total ODA loan capital of the project.

Accordingly, the total project investment was initially adjusted to increase from over VND 6,955 billion to VND 9,268 billion (an increase of about VND 2,312 billion). This adjustment led to an increase in the project's ODA loan capital from over USD 190 million (about VND 4,175 billion) to USD 262 million (equivalent to about VND 6,209 billion), an increase of nearly USD 72 million (equivalent to about VND 2,033 billion).

Other contents remain unchanged according to the original ODA project proposal and according to Decisions No. 1940 dated October 29, 2014, No. 25 dated January 6, 2020 and No. 526 dated April 27, 2022 of the Prime Minister.

Synchronize the scale of Ho Chi Minh City Ring Road 3

Explaining the reason for this adjustment, the Ministry of Construction said that adjusting the investment scale of the project to ensure exploitation according to highway standards leads to an increase in the total investment and total ODA loan capital.

Ho Chi Minh City Ring Road 3 is about 92km long, approved by the Prime Minister for planning as a highway, the completed phase includes 8 lanes for motor vehicles and parallel roads on both sides with corridors.

Component 1A project, Tan Van - Nhon Trach section of Ho Chi Minh City Ring Road 3, was approved for investment by the Ministry of Transport (now the Ministry of Construction) in 2016, signed an ODA loan agreement with the Korean Government in 2020, selected a contractor and organized construction in 2022.

At the time of project approval, the investment timing for the remaining sections of Ho Chi Minh City Ring Road 3 had not been determined, while the exploitation of approximately 8.75km independently according to expressway standards was not necessary.

Therefore, the Ministry of Transport has submitted to the Prime Minister for approval the investment policy for a separate section of the route according to the standards of a level III plain road, with a design speed of 80km/h, a scale of 4 motor lanes and 2 mixed lanes. The geometric elements of the route are invested to ensure compliance with highway standards. The site clearance work is carried out by the locality according to the complete cross-sectional scale.

Currently, the starting point of Tan Van - Nhon Trach Project connects with Component Project 3 implemented by Dong Nai Provincial People's Committee. The end point connects with Component Project 1 implemented by Ho Chi Minh City People's Committee. The component projects of the two localities are exploited according to expressway standards, with a scale of 4 lanes and parallel roads, and a design speed of 100km/h. This leads to a lack of synchronization in scale, design speed, and exploitation organization between Tan Van - Nhon Trach Project and these two component projects.

To ensure the ability to synchronously exploit the section on Ring Road 3 according to expressway standards, it is necessary to study the adjustment plan of Tan Van - Nhon Trach Project and need to be implemented soon to ensure completion and put into operation together with the component projects implemented by the two localities.

On April 27, 2023, Deputy Prime Minister Tran Luu Quang assigned the Ministry of Transport to discuss with the sponsor the proposal to use ODA loans from the Korean Government through adjusting and supplementing the Loan Agreement to implement the expansion plan of Component Project 1A of the Tan Van - Nhon Trach Section Construction Investment Project Phase 1, carry out procedures according to the provisions of the Law on Public Investment, and submit to the Prime Minister.

Thus, it is necessary to adjust the investment scale of the project from a level III delta road with 80km/h to a highway with 100km/h to suit the planning and ensure the ability to exploit synchronously on the entire Ho Chi Minh City Ring Road 3 route.

Pursuant to the provisions of the Law on Public Investment 2024 and Decrees No. 114/2021 and No. 20/2023, the Ministry of Construction requests the Ministry of Finance to report to the Prime Minister for approval to adjust the Project Proposal using ODA capital for Component Project 1A of the Tan Van - Nhon Trach Construction Investment Project, Phase 1 of Ho Chi Minh City Ring Road 3 with the following content: "Adjusting the increase in ODA loan capital from more than 190 million USD (about 4,175 billion VND) to more than 262 million USD (about 6,209 billion VND).

PT

Source: https://baochinhphu.vn/de-xuat-tang-tong-muc-dau-tu-du-an-tan-van-nhon-trach-102250406092203256.htm