There are many errors related to the management and use of investment capital in Component Project 1A of the Tan Van - Nhon Trach Road Project that need to be corrected so that this important road project in the Southeast can fully promote its investment efficiency.
There are many errors related to the management and use of investment capital in Component Project 1A of the Tan Van - Nhon Trach Road Project that need to be corrected so that this important road project in the Southeast can fully promote its investment efficiency.
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| Construction of Nhon Trach Bridge under Tan Van - Nhon Trach Road Project |
Intercontinental Expenses
The Ministry of Transport (MOT) has just issued Official Dispatch No. 882/BGTVT-TTr to the My Thuan Project Management Board and related units regarding the implementation of Inspection Conclusion No. 119/KL-TTr of the Inspectorate of the Ministry of Finance on the management and use of investment capital at Component Project 1A of the Tan Van - Nhon Trach Road Project.
Accordingly, the Ministry of Transport requested the My Thuan Project Management Board - the unit assigned as the investor - to urgently develop a plan and organize the implementation of Inspection Conclusion No. 119/KL-TTr in accordance with regulations, ensuring timeliness and punctuality. For the recommendations stated in the inspection conclusion that cannot be implemented immediately, a specific implementation plan and roadmap must be developed and reported to the competent authority in accordance with the provisions of the Inspection Law, clearly stating the progress and explaining the reasons.
“Based on the review results, clarify the responsibilities of individuals and collectives related to the shortcomings stated in Inspection Conclusion No. 119/KL-TTr, strictly handle according to authority and report to the Ministry of Transport for consideration and handling of individuals under the management authority of the ministry according to decentralization”, Official Dispatch No. 882/BGTVT-TTr stated by Mr. Nguyen Xuan Sang, Deputy Minister of Transport.
It is known that, in addition to the investor, the relevant units were also assigned by the Ministry of Transport to organize a review of the responsibilities of the collective and individuals for the shortcomings, limitations and shortcomings at Component Project 1A of the Tan Van - Nhon Trach Road Project, namely the Department of Construction Investment Management and the Department of Planning and Investment.
Previously, after more than 2 months of implementation, the Inspectorate of the Ministry of Finance issued Inspection Conclusion No. 119/KL-TTr on the management and use of investment capital at Component Project 1A of the Tan Van - Nhon Trach Road Project (a road infrastructure project with the goal of shortening the journey from Nhon Trach, Dong Nai province to Ho Chi Minh City, Binh Duong province).
Component Project 1A has a length of 8.75 km located in District 9, Ho Chi Minh City and Phu Thanh and Long Tan communes, Nhon Trach district, Dong Nai province. The Prime Minister approved the investment policy in Document No. 517/TTg-KTN dated April 18, 2014.
On that basis, the Ministry of Transport decided to approve the first investment project in Decision No. 497/QD-BGTVT dated February 19, 2016; approve the adjustment in Decision No. 154/QD-BGTVT dated February 12, 2022 (adjusting the implementation period to 5 years from the effective date of the Loan Agreement for Component Project 1A and performing the previous work for the Technical Design Consulting Package, cost estimates, and bidding support).
At the time of inspection (September 2024), Component Project 1A continued to be approved for the second adjustment by the Ministry of Transport in Decision No. 702/QD-BGTVT dated June 3, 2022.
It should be added that the total investment of Component Project 1A was first approved in Decision No. 497/QD-BGTVT at VND 5,329.56 billion, equivalent to USD 243.47 million, of which the loan capital from the Korean Government was USD 190.96 million, and the counterpart capital of the Vietnamese Government was USD 52.51 million.
Two years later, in Decision No. 702/QD-GTVT, the total investment of the Project was adjusted to increase to 6,955.65 million USD, equivalent to 317.75 million USD, of which the loan capital from the Korean Government decreased to 190.77 million USD, equivalent to 4,175 billion VND, and the counterpart capital of the Vietnamese Government increased to 2,779.75 billion VND, equivalent to 126.98 million USD.
According to the Inspectorate of the Ministry of Finance, by the end of June 2024, the Ministry of Transport will continue to submit Document No. 6606/TTr-BGTVT to the Prime Minister on adjusting the investment policy of Component Project 1A. At this time, the Project has been under construction for nearly 2 years.
By the time the Ministry of Finance Inspectorate began to investigate (September 2024), Component Project 1A had not yet been approved by the competent authority to adjust the investment policy.
In Document No. 6606/TTr-BGTVT, the Ministry of Transport proposed to adjust the scale of the route from a level III delta road to an expressway, and at the same time, adjust the total investment from VND 6,955.65 billion to VND 9,268.41 billion (an increase of about VND 2,312.76 billion).
The capital structure of Component Project 1A has also been adjusted, specifically increasing ODA loan capital from 190.77 million USD (about 4,175.9 billion VND) to 263.55 million USD (about 6,209.65 billion VND), an increase of about 72.78 million USD; increasing counterpart capital from 2,779.75 billion VND to 3,058.76 billion VND, an increase of about 279.01 billion VND. The Ministry of Transport also proposed the project implementation period until the end of 2028 (adjusted to increase by 3 years).
According to the Ministry of Transport, at the time of approving the Project, the investment timing for the remaining sections of the Ho Chi Minh City Ring Road 3 had not been determined, while the exploitation of approximately 8.75 km independently according to expressway standards was not necessary. However, currently, the starting point of the Project connecting with Component Project 3 and the ending point connecting with Component Project 1 of the Ho Chi Minh City Ring Road 3 Project are both according to expressway standards.
“Therefore, to ensure the ability to synchronously exploit the section on Ho Chi Minh City Ring Road 3 according to expressway standards, adjusting the Tan Van - Nhon Trach section is necessary and needs to be implemented soon to ensure completion and put into operation together with the remaining sections of Ho Chi Minh City Ring Road 3”, the leader of the Ministry of Transport explained.
Many errors in budget construction
In addition to the investment policy and implementation costs that must be continuously adjusted, the Inspectorate of the Ministry of Finance also noted a number of other limitations and errors related to the management and use of investment capital at Component Project 1A.
Specifically, the total investment of Component Project 1A, which was prepared, examined and appraised by the units and submitted to the Ministry of Transport for approval in Decision No. 497/QD-BGTVT, increased by an incorrect VND 40,399 billion due to the calculation of other consulting expenses and other costs not included in the provisions in Point 1.4, Appendix No. 01 - Method of establishing the Total Investment issued together with Circular No. 04/2010/TT-BXD dated May 26, 2010 on guidelines for establishing and managing construction investment costs; double-counting VAT for construction items of 3 toll stations and station equipment.
Component 1A project starts at Provincial Road 25B in Nhon Trach District, Dong Nai Province; ends at Ho Chi Minh City - Long Thanh - Dau Giay Expressway in Thu Duc City, Ho Chi Minh City. The most important part of the project is the 2.6 km long Nhon Trach Bridge, connecting Ho Chi Minh City with Dong Nai. This is a very important bridge creating a new connection between Ho Chi Minh City and the Southeast region. 
In addition, the adjusted total investment of Component Project 1A approved by the Ministry of Transport in Decision No. 702/QD-BGTVT was incorrectly calculated by VND 102,044 billion due to calculating other consulting expenses and other costs not included in the provisions of Circular No. 04/2010/TT-BXD; double-calculating VAT on construction costs and toll station equipment of VND 40,399 billion; not deducting the construction volume of the Km13+220 - Km13+750 section transferred to Component Project 1 of VND 17,768 billion; approving the construction of 3 toll stations, but in the Technical Design appraised in August 2021, the number of toll stations was only 1, an increase of VND 32,399 billion; The cost of volume reserve, price slippage reserve, consulting costs, other costs, VAT reduced accordingly according to the recalculated volume is 11,486 billion VND.
The Inspectorate of the Ministry of Finance also noted that the preparation, appraisal and approval of estimates for a number of items in the two main construction packages of Component Project 1A lacked calculation bases and technical design drawings.
Among the errors of this type pointed out, there is the work of "Launching beams with launching system" in Package CW1, which estimated the arrangement of 2 120-ton beam launching systems for the Dong Nai and Ho Chi Minh City approach bridges; Package CW2 established 1 120-ton beam launching system for the construction of Rach Chay bridge. However, the technical design documents do not have drawings showing the technical parameters and volume of this 120-ton launching system.
Item “Main span structure casting vehicle” Package CW1 estimates the arrangement of 2 cantilever casting vehicles at each pier, each weighing 120 tons. However, the technical design documents do not have drawings showing the technical parameters and weight of the main span structure casting vehicle item with a weight of 120 tons.
The cost of land for roadbed embankment K98 Package CW 2 was established in the estimate according to the price announcement of Dong Nai Department of Construction applicable to Nhon Trach district, but when determining the land purchase cost, the consulting unit did not have a record to determine whether the above land purchase price was purchased at the mine or at the construction site.
The Inspectorate of the Ministry of Finance said that the incorrect calculation of the increase in volume increased the contract value for the implementation of Package CW1 - Construction of Nhon Trach Bridge and Access Road (Km10+000 - Km12+600) of Component Project 1A by VND 1,418 billion and 7,112,697 won; the incorrect calculation of the increase in volume increased the contract value for the implementation of Package CW2 - Construction of sections Km5+000-Km10+000 and Km12+600-Km13+750 by VND 19,726 billion and 310,255,039 won. "The shortcomings and limitations, which are mostly due to subjective reasons, come from the management and implementation of the project by the competent authority and investor of Component Project 1A," the Inspectorate of the Ministry of Finance emphasized.
In Inspection Conclusion No. 119/KL-TTr, the Inspectorate of the Ministry of Finance requested the My Thuan Project Management Board to review the construction items that have been reduced or transferred to other projects for implementation and the contents that need to be adjusted and supplemented when adjusting the investment policy and total investment of the project to effectively use the loan capital according to the signed Agreement.
“After review, if there is no need or the project budget is not fully used, the My Thuan Project Management Board must promptly report to the competent authority for settlement according to regulations,” Conclusion No. 119/KL-TTr clearly stated.
The estimated value is reduced by 94,266 billion VND, of which Package CW1: Construction of Nhon Trach bridge and approach road (Km10+000 - Km12+600) is 63,156 billion VND; Package CW2: Construction of section K5+000-Km 10+000 and Km12+600 - Km13+750 is 31,11 billion VND.
Contract value deduction of VND 21,144 billion and 317,367,736 won, of which Package CW1 is VND 990 million and 7,112,697 won; Package CW2 is VND 19,726 billion and 310,255,039 won.
Negotiate with the contractor of Package CW2 to determine the volume and unit price of reclaimed soil due to incorrect calculation of reclaimed soil volume from the volume of roadbed excavation and the volume of reclaimed soil to be purchased at the time of signing the contract.
The Ministry of Transport reported that it adjusted the total investment down by VND 102,044 billion due to the establishment, appraisal, and approval of the total investment of some costs not in accordance with regulations and not deducting the volume transferred to other projects.
Source: https://baodautu.vn/hieu-chinh-du-an-thanh-phan-1a-tan-van---nhon-trach-d245464.html
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