Thua Thien Hue proposes to add 552,719 billion VND for urban development project

The project "Type II Urban Development Program" (green cities) - Thua Thien Hue Sub-project is proposed to supplement the investment scale using surplus capital with the amount of 23.857 million USD for 4 construction items.

The Prime Minister has decided to invest in the project “Type II Urban Development Program” (green cities) – Thua Thien Hue Sub-project with a total investment of 91.22 million USD (equivalent to 1,929.386 billion VND) including a loan from the Asian Development Bank (ADB) of 60.69 million USD (1,283.59 billion VND) and counterpart capital of 30.53 million USD (equivalent to 645.796 billion VND).

The project was first approved by the People's Committee of Thua Thien Hue province in April 2016, and last adjusted in August 2024. The project was assigned to the Department of Planning and Investment of Thua Thien Hue province as the investor, with the implementation period determined from 2018 to June 30, 2028. The project implementation location is in Hue city, Huong Tra town and Huong Thuy town, Thua Thien Hue province.

An Van Duong new urban area, where many items of the project "Type II Urban Development Program" (green cities) - Thua Thien Hue Sub-project are concentrated. Photo: Ngoc Tan

Accordingly, the project aims to improve and expand the transport network, gradually complete the synchronous urban infrastructure, at the same time create momentum for urban development, promote the development of commercial and service businesses and exploit tourism potential. Improve environmental sanitation conditions, enhance the urban environmental landscape...

The project includes 15 construction items and is divided into 3 components: Component 1 - Flood prevention and environmental sanitation; Component 2 - Transport system development; Component 3 - Capacity building and project implementation support.

According to the Department of Planning and Investment of Thua Thien Hue, up to now, the Project Management Board has completed the selection of contractors for 10/10 construction packages with a value of more than 1,008.2 billion VND. Of which, 2 packages have been completed and put into use and 8 packages are still being implemented with a volume of more than 675.99 billion VND (reaching more than 67% of the total project volume). However, the actual implementation value of the components is smaller than the signed loan agreement. The reason is due to the surplus capital after bidding, surplus capital due to exchange rate changes, and surplus capital due to unallocated agreement reserves.

Also according to the Department of Planning and Investment of Thua Thien Hue, on September 20, the People's Committee of Thua Thien Hue province submitted a report to the Provincial People's Council on adjusting the investment policy of the project "Program for Development of Type II Cities" (green cities) - Thua Thien Hue Sub-project.

Accordingly, the investment scale using the project's surplus capital with the amount of 23.857 million USD - equivalent to 552.719 billion VND to invest in additional items: Ecological canal area A - An Van Duong; Road renovation including construction of 2 new road sections in area B of An Van Duong new urban area and renovation of 3 road sections; Pedestrian bridge connecting from Hue City administrative center - Provincial Sports Center.

Adjusted total project investment, in which the adjusted total investment (VND) is 2,088,472 billion VND (increased by 59,087 billion VND due to exchange rate changes during payment), while the total investment in USD remains unchanged (91.22 million USD).

The Department of Planning and Investment of Thua Thien Hue explained that during the project implementation, the USD/VND exchange rate changed depending on the payment time. This is the reason why the total project investment in USD remains unchanged, but after converting to VND, it will have to be adjusted.

Mr. Nguyen Chi Tai, Head of the Economic - Budget Committee, Thua Thien Hue Provincial People's Council, said that through the review, this is a very important project of the province. In recent times, all levels, sectors, localities, and investors have made great efforts in the process of implementing the project. The project has been effective in improving and expanding the transport network, gradually completing the synchronous urban infrastructure; beautifying the urban landscape and environmental sanitation.

“The Economic - Budget Committee agrees with the content of the Provincial People's Committee submitting to the Provincial People's Council, and has requested the Provincial People's Committee to direct the investor and related units to urgently complete the documents and procedures to submit to the Prime Minister for decision to adjust the project investment policy for timely implementation,” Mr. Tai informed.

Source: https://baodautu.vn/thua-thien-hue-de-xuat-bo-sung-552719-ty-dong-cho-du-an-phat-trien-do-thi-d226242.html