On August 27, the People's Committee of Quang Nam province sent a report to the Ministry of Planning and Investment and the Ministry of Finance on the implementation status and proposed to unify the policy of adjusting the increase in the central budget's counterpart capital, adjusting the project implementation time, extending the capital allocation time, and extending the loan agreement for the Central Region Linkage Project, Quang Nam province.
Compensation and site clearance costs exceed total investment
According to the People's Committee of Quang Nam province, the Central Region Connectivity Project in Quang Nam province consists of two components: traffic and lighting and traffic signal systems. The total investment capital is over 34.5 million USD, equivalent to over 768 billion VND (according to the foreign exchange rate in April 2017).
Intersection point of the Central Region Connection Project, Quang Nam province with National Highway 1A.
Construction started on July 19, 2023, but to date, the project has only completed more than 17% of the contract value of the traffic construction package.
Quang Nam Provincial People's Committee said that the project was approved by the Provincial People's Committee in 2017, reported to the Ministry of Planning and Investment, and the Ministry of Finance to register the list and capital level in the medium-term public investment capital plan for the period 2016 - 2020.
However, the project has not yet negotiated and signed an Agreement with the Sponsor, so the project's medium-term public investment plan for the 2016-2020 period has not been assigned and there is no basis for implementation.
Quang Nam Provincial People's Committee also pointed out factors that caused the project to be delayed, such as: land acquisition problems, high-voltage power infrastructure problems, lack of land for filling, and extreme weather in mountainous areas.
In addition, the project had to be adjusted many times, the impact of the complicated and prolonged Covid 19 pandemic broke the coordination chain with foreign personnel.
Bidding packages must be organized for international bidding, so the time for other procedures is longer than domestic bidding; the regulation that each implementation step must ask for the donor's opinion leads to a longer time for organizing contractor selection...
Notably, the People's Committee of Quang Nam province said that the construction of resettlement sites, compensation areas, and land acquisition have led to increased project costs, exceeding the total approved investment.
Specifically, in 2017, the estimated compensation and site clearance costs were over 125 billion VND. However, due to the project's long implementation period, up to now, the compensation and site clearance costs have all changed and increased in price.
"The total need for compensation and site clearance for the project as proposed by the People's Committees of the districts is nearly 340 billion, exceeding the provisional value in the decision approving the investment project by more than 200 billion," the People's Committee of Quang Nam province added.
Proposal to add 13 million USD to compensate for inflation
According to the People's Committee of Quang Nam province, all activities of the Central Region Linkage Project have been and are being implemented. Of which, the construction package for the traffic part is under construction; the construction package for the lighting part has not selected a contractor due to price slippage exceeding the total approved investment.
Quang Nam requests an additional 13 million USD to compensate for price inflation and project site clearance.
The People's Committees of the districts in the project area are speeding up the implementation of compensation and site clearance work, but the increased costs exceed the total investment, so there is no basis for implementing the additional part, affecting the progress and interrupting some project implementation work.
Therefore, the People's Committee of Quang Nam province proposed that the competent authority adjust the total investment of the project to increase by more than 13 million USD, equivalent to more than 290 billion VND.
In addition, according to the project investment policy approved by the Prime Minister, the project is effective for 4 years from the date the project's Loan Agreement takes effect (October 28, 2020). The project completion date is October 2024.
"Thus, the project implementation time according to the approved investment policy will not be guaranteed to complete the project. Therefore, in order to ensure the time for the project to be completed, accepted for use and finalized, meeting the approved investment objectives", the report of the Quang Nam Provincial People's Committee stated.
Quang Nam Provincial People's Committee also proposed to adjust the capital allocation plan to 2026 and adjust the project implementation period from 2020 to 2024 to 2020 to 2026.
The Central Region Connectivity Project in Quang Nam Province has a total length of nearly 32km with 2 components: traffic and lighting system, traffic signals. The project is funded by the Economic Development Cooperation Fund of Korea (EDCF).
Component 1 will invest in building nearly 28km of road, including 2 sections: From Tai Da intersection (Tien Phong commune, Tien Phuoc district) following DH1.TP road to Tien Ky town (Tien Phuoc district) over 8.8km long.
Section 2 is the starting point connecting to the end of the Tien Ky town bypass following National Highway 40B to the intersection with the starting point of the Tra My town bypass (Bac Tra My district) with a length of 18.2km. The connecting section from Km 35+305 (National Highway 40B, following National Highway 40B towards Tien Ky town) is nearly 1km long.
Component 2 will invest in building nearly 4km of road, including 2 sections. Section 1 from Thanh Nien coastal road (now DT613B road) to rescue road (now coastal road 129, Vo Chi Cong street) is more than 2km long.
Section 2 from Km 987+625 National Highway 1A to Km 11+100 Provincial Road 615 is nearly 1.9km long. In section 2, there will be an additional lighting system and traffic lights.
The project aims to complete the transport connection network in the Central region and the Central Highlands provinces; connect Bo Y International Border Gate with Ky Ha Seaport, Chu Lai International Airport, Chu Lai Open Economic Zone and Dung Quat Economic Zone according to the policy of "ASEAN Connection"; develop the socio-economic situation of the project area through market access, non-agricultural development, industrial development on the basis of rationalizing land use and reducing travel costs.
Source: https://www.baogiaothong.vn/vi-sao-quang-nam-xin-them-13-trieu-usd-cho-du-an-lien-ket-vung-mien-trung-192240827123008348.htm
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