The 2.7 km Ring Road 2 project in Ho Chi Minh City is still at an impasse in land fund payment.

Although the Ho Chi Minh City People's Committee has approved adjustments to the feasibility study report of the 2.7 km Ring Road 2 Project from January 2024, up to now, the Project has not yet resolved the land fund payment to resume construction.

On March 20, Van Phu - Bac Ai Joint Stock Company sent Document No. 05/2024/CV-VPBA to the Ho Chi Minh City People's Committee requesting to remove obstacles for the 2.7 km Ring Road 2 Project (section from Pham Van Dong Street to Go Dua - National Highway 1 intersection).

The 2.7 km Ring Road 2 project has stopped construction since 2020, and the construction site is now a place for cattle grazing - Photo: Le Quan

The business side said that on March 14, the Ho Chi Minh City Department of Transport chaired an inter-sectoral working group meeting with the company to resolve issues related to the Project, but the meeting still failed to reach an agreement on the contents to sign the contract appendix.

To speed up the project progress and reduce interest, the investor proposed that the Ho Chi Minh City People's Committee hand over the corresponding land plots for BT Contract payment to the enterprise in the third quarter of this year and adjust the total investment to include in the BT Contract appendix.

Regarding the project implementation period, the enterprise proposed to adjust the project completion period to 18 months from the date of completion of site handover (site handover no later than June 2025) instead of leaving the implementation period from 2015 to 2026.

With many remaining issues, the investor requested the Ho Chi Minh City People's Committee to direct departments and branches to complete the adjustment of procedures by June 2024 at the latest to continue implementing the project, especially completing site clearance in Thu Duc City.

As the Investment Electronic Newspaper - Baodautu.vn has reported in previous articles, the 2.7 km Ring Road 2 Investment Project (section from Pham Van Dong Street to Go Dua - National Highway 1 intersection, Thu Duc City) started construction in 2017, and by 2020 the project had temporarily stopped construction due to site clearance problems and changes in investment regulations in the form of BT.

In early 2024, the Ho Chi Minh City People's Committee approved adjustments to the Project's feasibility study report, but to date the Project has not been able to resume construction due to incomplete procedures.

To date, the investor has spent more than VND 1,474 billion (excluding interest) to advance for site clearance and partial construction of the Project. With the amount of VND 1,474 billion, the estimated interest that the Ho Chi Minh City People's Committee must bear by the end of 2023 is VND 813 billion, an average of VND 14.9 billion per month.

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