Key Infrastructure Projects in Transportation See Moderate Disbursement
According to statistics from the Ministry of Finance as of March 31, 2024, the total disbursed capital for 9 key national transportation projects amounted to 11,339.77 billion VND (Vietnamese Dong), meeting 12.3% of the assigned 2024 plan (92,152.86 billion VND). Of this, the central budget capital was 10,160.08 billion VND, representing 15.4%, while the local budget capital was 1,179.69 billion VND, accounting for 6.9%.
Thus, the disbursement performance of key national projects is comparable to the national average for the first three months of the year (12.16%).
PROJECTS WITH RAPID PROGRESS AND LAGGING PROJECTS
Regarding the disbursement progress of the North-South Expressway Phase 2 project for 2021-2025 (Phase 2), the project had disbursed nearly 5,200 billion VND, or 17.2%, of its total capital allocation of nearly 31,000 billion VND in 2024. Notably, several component projects have achieved high disbursement rates, such as Bai Vot – Ham Nghi (52.3%) and Vung Ang – Bung (29.6%).
However, some component projects have seen slower disbursement rates, such as Chi Thanh – Van Phong (6%), facing delays due to slow relocation of technical infrastructure, weak soil conditions, and incomplete mining permits.
During an inspection of major transportation projects before the April 30 and May 1 holidays, the Prime Minister visited the expressway and urged for the resolution of bottlenecks, emphasizing the need to allocate resources for land clearance and construction as it becomes available, with the aim of completing the Chi Thanh – Van Phong section by September 2, 2025.
The Quang Ngai – Hoai Nhon Expressway, the largest in scale and budget among the 12 North-South Expressway Phase 2 component projects, has disbursed 9.9% of its 2024 capital plan due to land-related issues during construction.
As for the Bien Hoa – Vung Tau Expressway, component project 3 has achieved a disbursement rate of 50%, while component projects 1 and 2 have only disbursed 1.8% of their respective plans. Component project 3 is expected to be completed three months ahead of schedule.
OBSTACLES HINDERING PROGRESS
Regarding obstacles related to key national projects, the Ministry of Finance reported that on March 30, 2024, based on the detailed allocation of the 2024 central budget plan from increased revenue, budget cuts, and savings in 2021, the Prime Minister issued Decision No. 258/QD-TTg to allocate a budget of approximately 6,458 billion VND to the Ministry of Transport and eight localities for capital investment in 2024.
This funding is intended for three key national highway projects: the Khanh Hoa – Buon Ma Thuot, Bien Hoa – Vung Tau, and Chau Doc – Can Tho – Soc Trang highways, pursuant to Resolutions No. 58/2022/QH15, No. 59/2022/QH15, and No. 60/2022/QH15. Among these, the Ministry of Transport received an additional 2,571 billion VND, Khanh Hoa received 600 billion VND, and Dak Lak received 300 billion VND.
However, as of April 23, 2024, only the Ministry of Transport and four localities (Khanh Hoa, Dak Lak, Can Tho, and Hau Giang) had detailed the 2024 central budget plan for the component projects under their management, with a total allocated capital of 4,021 billion VND.
Four localities, namely An Giang, Soc Trang, Dong Nai, and Ba Ria – Vung Tau, had yet to allocate a total of 2,437 billion VND for the 2024 plan.
Regarding land clearance and construction, the Ministry of Transport and local authorities reported that several key national projects are facing difficulties and obstacles during implementation.
For land clearance, the progress in some component projects of the North-South Expressway for the 2021-2025 period, along with the Bien Hoa – Vung Tau and Khanh Hoa – Buon Ma Thuot projects, is behind the requirements set by the government and the Prime Minister.
Furthermore, the relocation of technical infrastructure, particularly high-voltage power lines, is facing significant delays and challenges. The conversion of forest land, forest land, and rice fields for the North-South Expressway for the 2021-2025 period and the Khanh Hoa – Buon Ma Thuot project has yet to be completed.
Regarding construction materials, the concurrent implementation of multiple large-scale transportation projects in the same region has led to a shortage of materials, particularly fill materials such as earth, sand, and stones, especially for projects in the Mekong Delta. The implementation of a specific mechanism for the exploitation of ordinary construction materials remains hindered by various obstacles and complexities.
For example, the Chau Doc – Can Tho – Soc Trang Expressway, particularly the section in Can Tho City spanning 37.8 km, requires approximately 5.3 million cubic meters of sand for roadbed construction. However, only 2.4 million cubic meters have been secured so far, leaving a significant deficit.
The Chau Doc – Can Tho – Soc Trang Expressway section in Hau Giang province, which covers nearly 37 km, is also facing difficulties due to a shortage of sand. According to statistics, the construction of component project 3 requires approximately 7 million cubic meters of sand. Hau Giang is currently working with contractors to explore and secure sand sources from neighboring localities to meet the demand of 3.4 million cubic meters.
To address the shortage of river sand for transportation projects, relevant agencies have been granted permission to experiment with the use of sea sand for road construction. If the necessary procedures and processes are completed, contractors are scheduled to begin extracting sea sand from Soc Trang in May 2024 to supply the ongoing expressway projects in the region.
The scarcity of sand for road construction in key transportation projects in this area is compounded by its high cost. While the estimated price at the time of project design was approximately 200,000 VND per cubic meter, the current commercial purchase price is close to 300,000 VND per cubic meter.
URGENT CAPITAL ALLOCATION AND REMOVAL OF BOTTLENECKS IN KEY PROJECTS
To accelerate the progress of key national projects, the provincial governments of An Giang, Soc Trang, Dong Nai, and Ba Ria – Vung Tau must prioritize the allocation of 2024 capital plans from the 2021 central government budget surplus. They must focus on implementing disbursements in accordance with the assigned plans.
Additionally, the Ministry of Transport and local authorities should monitor the capital disbursement of individual projects, using this information to develop and implement appropriate measures for guidance and supervision, as per the directives of the Prime Minister – Head of the Steering Committee at the 10th meeting of the National Steering Committee for Key Infrastructure Projects in the Transportation Sector.
Regarding compensation, support, and resettlement, local authorities must expedite the completion of land clearance in accordance with the required schedule, focusing on developing resettlement areas and ensuring the stability of residents’ lives.
With regard to construction materials, localities should swiftly identify sufficient sources of materials and collaborate with investors and construction contractors to complete the necessary procedures for ordinary construction material mines, as per the specific mechanisms established by the National Assembly and the government, ensuring adequate reserves and capacity in line with the construction schedule.
