Open mechanism, solve capital problem
The Ho Chi Minh City People's Committee has just issued a document agreeing with the investment plan for key, strategic transport projects and works that need to be prioritized and focused on in the 2021-2025 and 2026-2030 periods proposed by the Ho Chi Minh City Department of Transport. According to the list of key projects of the Department of Transport, there will be 17 projects completed in the period from 2022-2025 and 11 projects will start construction in the next 3 years. In fact, this list once again names the projects that have been "familiar", year after year. Every project starts late and construction is sluggish due to the common "disease" of lack of capital.
According to the leader of the Ho Chi Minh City Department of Transport, the new resolution replacing Resolution 54/2017 of the National Assembly will help Ho Chi Minh City mobilize social resources and shorten the progress of project implementation.
However, speaking to Thanh Nien , Director of the Ho Chi Minh City Department of Transport Tran Quang Lam affirmed that the city has found a "cure" and the upcoming period will be a period of acceleration for the transport sector. The cure for the lack of capital that Mr. Lam likened is the resolution to replace Resolution 54/2017, which is awaiting approval by the National Assembly.
Specifically, the new resolution has many mechanisms for infrastructure development, especially transport infrastructure, from capital sources, capital mobilization methods to new public-private partnership (PPP) investment methods. Instead of the previous city being limited by the ceiling of the medium-term investment capital plan, relying heavily on the regulation rate, requesting capital from the Central Government, and having to weigh and measure within limited resources, so doing one project had to leave another project behind, with the new mechanism, the city will be able to balance its own capital sources to implement projects. Depending on the resources and budget of the city, it will prepare in advance, research, and invest in projects immediately, then report back to the Central Government. This helps strategic projects to "run" immediately, deploy quickly to complete early, and contribute to economic development. From there, Ho Chi Minh City will have more revenue to balance other projects. "If approved, Can Gio Bridge, Thu Thiem 4 Bridge, Ring Road 4, and the unclosed section of Ring Road 2 will be funded according to the principles of Resolution 54," Mr. Tran Quang Lam added.
In addition, when the BOT contract form is applied to the existing road system, projects that can be implemented early include the expansion of National Highway 1; the renovation and upgrading of National Highway 22; the expansion of National Highway 13; or some bridge and road projects such as Binh Tien bridge and road, the North-South axis... These are all key projects but the current budget cannot meet the demand and can be implemented under the BOT method very conveniently.
Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong assigned the Department of Transport to urgently coordinate with relevant departments and units to complete the draft plan for developing transport infrastructure with specific mechanisms and policies for the development of Ho Chi Minh City. The Department of Transport needs to carefully prepare working documents with the Ministry of Transport to resolve problems and speed up the implementation of the plan, to be completed before June 25. At the same time, urgently take the lead and coordinate with MAUR and relevant departments and units to advise and propose to the City People's Committee an investment plan for urban railway projects according to the conclusion of the Politburo on the orientation for the development of Vietnam's railway transport to 2030, with a vision to 2045.
In particular, it is important to study and deploy some routes early (phase 1 investment) to form an urban railway network before 2035 in the central area of the city and rapidly developing urban clusters. In addition, it is necessary to develop a program, plan and roadmap to implement the conversion of road motor vehicles from using fossil fuels to using electric energy. From there, develop related projects and proposals to implement immediately after the National Assembly passes a resolution replacing Resolution 54.
In addition, the Politburo has issued Conclusion 49 that by 2035, the urban railway network of Ho Chi Minh City will have to complete 8 routes. Currently, the Department of Transport is coordinating with the Urban Railway Management Board (MAUR) on a plan to break through the railway network, but if the mechanism and method are maintained as in the past, the goal will be very difficult to achieve. Not to mention removing legal barriers related to exhaust gas treatment, converting to clean vehicles, investing in works serving urgent needs such as parking lots, etc.
"Most importantly, the new resolution will help Ho Chi Minh City mobilize social resources, not only in terms of finance but also in terms of management capacity of investors and contractors, shortening the progress of project implementation. Certainly, if the resolution is passed, infrastructure in general and transport infrastructure in particular of Ho Chi Minh City will have a breakthrough and reach the finish line sooner, including the urban railway network," the Director of the Ho Chi Minh City Department of Transport emphasized.
Replicating new models, new ways of doing things
Recently, the record achievements of Ho Chi Minh City and other localities in preparing and ensuring the progress of the groundbreaking of Ho Chi Minh City Ring Road 3 were also commended by Prime Minister Pham Minh Chinh at the groundbreaking ceremony of the project on June 18. In January 2022, the Government issued an official document assigning Ho Chi Minh City to preside over the project. Within 5 months, by June 16, 2022, Ho Chi Minh City officially approved the investment policy for the largest project in the Southeast region. Exactly 1 year later, the project met all the conditions to start construction. Currently, the investor has completed the selection of contractors, and machinery and materials have been fully gathered at the construction site. Nearly 90% of the "clean" site has been reclaimed.
Hoc Mon District alone will complete 100% of site clearance by the end of June. These are all unprecedented records of the Ho Chi Minh City transport sector. Notably, this is the first time the City Transport Department has been the investor of a very large-scale expressway project (2 component projects with a total investment of 48,000 billion VND, equivalent to the investment capital of metro line 2). The Department of Transport is also the first time the specialized agency for the expressway project, organizing the implementation from basic design, technical design, forecasting...
Mr. Tran Quang Lam assessed that Ring Road 3 has brought a new model, a new way of doing things to replicate for future projects. First of all, it is from the policy of decentralization and delegation of power of the National Assembly and the Government. Assigned to organize the implementation of a national-scale project, each province and city has promoted the internal strength of its staff, together struggling to change the way of doing things and changing the method of solving work. Obviously, when given the right to take the initiative, localities have promoted their internal strength.
At the same time, Ring Road 3 is a project that applies special mechanisms. For example, in terms of compensation and site clearance, some procedures are allowed to be done in parallel and at the same time. Normally, the project must be approved before the boundary is approved, but Ring Road 3, based on the design, has approved the boundary in advance to carry out field work and to count, measure, etc., so the progress is faster. The work of selecting consultants is also shortened. Investors are assigned contractors and consultants with quick capacity, which helps save a lot of time while still being completely in line with procedures and legal regulations. In addition, the coordination method between departments and branches is also built more systematically, with a steering committee and an advisory board. Therefore, shortcomings and difficult technical and professional issues are thoroughly resolved, without having to wait for many meetings, helping the project "run" more smoothly.
"The city is focusing on striving to start construction of strategic projects such as Ring Road 4, Binh Trieu Bridge, Thu Thiem Bridge 4, Ho Chi Minh City - Moc Bai Expressway and Metro Line 2 by April 30, 2025. With the spirit of Ring Road 3, innovative ways of doing things and the dynamic spirit of the new resolution, the transport sector will certainly have many breakthroughs," affirmed the leader of the Ho Chi Minh City Department of Transport.
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