Delays in construction projects

Government inspectorate petition to reclaim land of long delayed projects

March 23, 2021 by sggpnews.org.vn

Illustrative photo ( Photo: SGGP)

According to inspectors, many land lots were handed over in the period of 1990-2003 for under-construction property projects but construction of them remains incomplete by site clearance bottleneck; for instance, the construction projects for infrastructure in residential quarters Nam Sai Gon (with 10.1 hectares) and Intresco ( with 6.91 hectares), in resettlement condominium in the section 6B (with 2.59 hectares); the entertainment park project Hoa Dong ( with 3.78 hectares); for parking and commercial service project (with 2.95 hectares); residential block Thang Long ( with 24.79 hectares).

All above-mentioned infrastructure projects are located in the southern urban area of HCMC. Inspectors said that the city administration has not put land use of all investment projects in the southern urban area up for auction to select investors.

Inspectors said that unfocused investment resulted in many unfinished projects. Most of construction projects handed over in 2000 are either delayed or do not have a definitive timeline.

Also, as per inspection result, most of the projects in the southern urban area encroached investment formalities. All od projects were approved when they have not had detailed planning.

By Do Trung – Translated by Anh Quan

Government inspectorate propose to reclaim long delayed projects in HCMC

March 23, 2021 by sggpnews.org.vn

Illustrative photo ( Photo: SGGP)

According to inspectors, many land lots were handed over in the period of 1990-2003 for under-construction property projects but construction of them remains incomplete by site clearance bottleneck. They include the construction projects for infrastructure in residential quarters Nam Sai Gon (with 10.1 hectares) and Intresco ( with 6.91 hectares), in resettlement condominium in the section 6B (with 2.59 hectares); the entertainment park project Hoa Dong ( with 3.78 hectares); for parking and commercial service project (with 2.95 hectares); residential block Thang Long ( with 24.79 hectares).

Inspectors said that unfocused investment resulted in many unfinished projects. Most of the construction projects with land handed over in 2000 are either delayed or do not have a definitive timeline.

Also, as per inspection result, most of the projects in the southern urban area encroached investment formalities. Projects were approved without detailed construction plans.

By Do Trung – Translated by Anh Quan

Deadline of Thu Thiem 2 Bridge Project completion to be extended to 2023

March 23, 2021 by sggpnews.org.vn

This is the third time that the project has been repeatedly delayed following in 2018 and 2020 as site clearance and compensation for the project have not been slowly completed. Currently, the project reaches 70 percent of construction volume.

The Ho Chi Minh City Department of Planning and Investment has sent the adjustment report of Thu Thiem 2 Bridge Investment and Construction Project under the form of build-transfer (BT) with a total investment of VND3,082 billion (US$133 million).

In order to ensure complementation progress, the department petitioned the HCMC People’s Committee to assign the People’s Committee of District 1 in coordination with the Municipal Department of Natural Resources and Environment to promptly complete the site clearance procedures, hand over the clear site to investors for implementation.

By staff writers- Translated by Huyen Huong

Land clearance roadblock delays major Saigon bridge completion

March 22, 2021 by e.vnexpress.net

The bridge connecting District 1 with Thu Thiem New Urban Area in Thu Duc City spans 1.4 kilometers and comprises six lanes.

Construction started in 2015 at a cost of nearly VND3.1 trillion ($134.9 million), with the project originally scheduled to complete in 2018.

The project has since missed the second deadline set for last September, due to land acquisition difficulties in District 1, with the September deadline for this year pushed back yet again for similar reasons.

As of last year, work on the project was 70 percent complete but construction on certain sections in District 1 continues to face delays since some of the required land belongs to the Ministry of National Defense.

The project now requires an area of 13,000 square meters, including the homes of six families aside from land plots owned by three organizations and managed by the ministry.

Aside from the land clearance roadblock, the project has also faced issues in verifying both project volume and value with investor Dai Quang Minh Real Estate Investment JSC.

For now, related agencies and departments are in the process of negotiating with the investor, as required by the Department of Transport earlier last month.

As planned, several adjustments will be made to the original project design.

With all existing obstacles, related agencies have proposed the city to delay the project’s completion to 2023.

Thu Thiem 2 Bridge, once completed, would not just help connect the city’s heart of District 1 with Thu Thiem New Urban Area but also help ease traffic congestion at the intersections of Ton Duc Thang-Nguyen Huu Canh streets and Ton Duc Thang-Le Thanh Ton streets in District 1.

Five bridges and a tunnel are planned to connect the Thu Thiem area, envisioned as an iconic urban development project in Southeast Asia, with the rest of Ho Chi Minh City. Thu Thiem 1 Bridge and the tunnel connecting Districts 1 and 2 have already opened to traffic.

City reviews legal status of 57 delayed projects

March 22, 2021 by bizhub.vn

Nguyen Thanh Phong, chairman of the People’s Committee, at a meeting yesterday on how to improve the business climate in HCM City. — Photo courtesy of the Investment and Trade Promotion Centre of HCM City

HCM City is reviewing the legal status of 57 delayed projects, mostly in real estate, to speed up efforts to improve the business climate in the city.

Speaking at a meeting last week, Nguyen Thanh Phong, chairman of the city People’s Committee, said the city would address problems related to the legality of these projects and seek guidance from the central Government.

“The city will do whatever it takes to resolve any problems facing businesses in a timely manner, with the aim to build a friendly investment environment for investors.”

Thirty-five of 92 delayed projects in the city have already been reviewed, and they have met most of the legal requirements. That leaves 57 projects for further review.

Le Hoa Binh, vice chairman of the People’s Committee, said: “The city has developed a draft plan to implement a resolution on improving the business environment” and will also focus on realising the “twin goal” of containing the virus while recovering economic growth.

After 32 working sessions over the past three years, the working group has reviewed 110 projects in the city many bottlenecks have been removed.

The working group led by Phong was established in 2017 to help investors navigate regulations and modify policies were needed as part of an effort to improve the investment climate.

The group deals with investment projects within the jurisdiction of the city, studies investment proposals, ensures that projects can begin, and comes up with solutions to problems.

2021 tasks

The city has set a range of tasks this year to improve the business climate.

It will further administrative reform and issue policies to select potential investors in accordance with the Law on Investment, and issue regulations on bidding procedures with priority given to large urban development projects using smart urban technology.

It will publicise a land-use plan which will include a land-price framework close to the market price, and complete regulations on electronic transactions for land. The city will also continue its digital transformation plan and e-commerce expansion.

It also plans to speed up major projects such as waste treatment projects under the PPP (public-private-partnership) model, promote online bidding, and submit a public investment plan for the 2021 – 2025 period to the People’s Council for approval.

In addition, the city will shorten construction licensing time, and publicise its master urban plan and develop a master plan for the new Thu Duc City.

In the 2020-2035 period, it will strive to improve human resources, especially in the fields of IT, mechanics – automation, artificial intelligence, corporate governance, finance – banking, healthcare, and tourism and urban management.

The city will also propose solutions to improve access to credit and support people and enterprises affected by the impact of the COVID-19 pandemic. — VNS

Insufficient legal framework delays disbursement for Hanoi’s railway projects

August 31, 2020 by hanoitimes.vn

A constant change of local legislation has delayed major infrastructure projects in Hanoi.

A lack of legal provisions governing the upward revised investment cost and the Covid-19 pandemic are the main reasons for the delayed disbursement of of investment capital for Hanoi’s two railway projects, a Hanoi official has said.

At the meeting. Photo: Thanh Hai

Director of the Hanoi Metropolitan Railway Management Board (MBR) Nguyen Cao Minh was quoted by Kinh Te & Do Thi as saying at a meeting on August 31 that his board has been assigned to manage and implement urban rail works which are key national projects with a total investment of more than US$1 billion. However, the implementation time has dragged on as many mechanisms and policies have been changed. Therefore, the execution of these projects has to go through many adjustments to comply with the overlapping regulations.

Some VND1,200 billion (US$51.8 million) has been earmarked for the Nam Thang Long – Tran Hung Dao section of the railway line No.2 project, but this amount is being upward revised and such an adjustment was not regulated by the old Law on Public Investment. The MBR is waiting for instructions from the Ministry of Planning and Investment on this issue.

Work on Hanoi’s third urban railway project, the Nhon – Hanoi station, under construction with total capital of VND4,030 billion (US$172.8 million), has been delayed due to the Covid-19 pandemic. So far, 43% of the total amount has been disbursed.

In four months ahead, the MBR will continue to drastically urge the contractors to strengthen measures to prevent Covid-19 contagion in implementing the projects, especially for foreigners, so that the projects would be carried out as planned.

“We will make the best efforts to disburse public investment capital allocated to the Nhon – Hanoi station metro line project and the Nam Thang Long-Tran Hung Dao project as soon as possible,” Mr. Minh said.