The Quang Nam People’s Committee has recently sent an official dispatch to the Ministry of Finance, agreeing to pay the commitment fee during the implementation period of the Project for Developing the Environment and Urban Infrastructure to Respond to Climate Change in Hoi An City (abbreviated as the Hoi An Climate Change Project).
Additionally, the People’s Committee of Quang Nam proposed that the Ministry of Finance not record the debt for the province. Regarding the penalty interest arising from the non-payment of the commitment fee from November 1, 2017, to December 31, 2022, the People’s Committee of Quang Nam requested the Ministry of Finance to recalculate this amount.
 Ong Dien Bridge is one of the component projects of the project “Dredging, Emergency Flood Discharge, and Salinity Prevention of Co Co River – Hoi An City.” |
The Hoi An Climate Change Project has a total investment capital of 88.5 million USD, equivalent to more than 1,859 billion VND. Of this, 70 million USD is from the Asian Development Bank (ADB) loan, 3 million USD is from non-refundable aid, and 15.5 million USD is domestic counterpart funding. The project was implemented from 2015 to 2022, according to Decision No. 665/QD-TTg dated April 26, 2016, of the Prime Minister.
The plan to complete the project by December 31, 2022, could not be realized. The Prime Minister then decided to extend the project until December 31, 2023.
The Quang Nam Provincial People’s Council agreed to allocate 56 billion VND from the local budget to the investor to pay for the incurred costs during the ADB loan extension period for the project. However, the project could not be completed as committed.
According to the investor (the Management Board of Traffic Construction Projects in Quang Nam Province), all packages of the project, including 3 out of 3 consulting packages using ADB capital, 8 out of 8 construction packages belonging to 5 component projects, and 1 package of HA/C1 (flood warning system at Vu Gia – Thu Bon River), have been awarded contracts.
The following component projects have been completed and put into use: HA/W1 (construction of Lai Nghi and Phap Bao reservoirs); HA/W2 (access road to the south of Cua Dai Bridge in Hoi An); HA/W5 (construction of the northern access road to Cua Dai Bridge); and HA/C1 (flood warning system at Vu Gia – Thu Bon River).
However, two packages could not be completed within the project implementation period. Specifically, package HA/W3-2, dredging of Co Co River, belonging to component project HA/W3, and package HA/W4, upgrading and renovating DT608 route, were only partially completed.
The remaining sections, including the section from Lai Nghi Pumping Station to Lai Nghi Intersection and DH14.DB, and the embankment section from Lai Nghi Pumping Station to Lai Nghi Intersection, have not yet secured the construction site and cannot be implemented.
Therefore, the investor was forced to propose to the People’s Committee of Quang Nam Province to allow the cancellation of package HA/W3-2, dredging of Co Co River; technical suspension of sections DH14.DB, DT608 (from Lai Nghi Pumping Station to Lai Nghi Intersection) under package HA/W4, upgrading and renovating DT608 route; and technical suspension of the embankment section from Lai Nghi Pumping Station to Lai Nghi Intersection under package HA/W1 (construction of Lai Nghi and Phap Bao reservoirs).
The technical suspension of the project has been approved by the People’s Committee of Quang Nam Province. The unfinished items will continue to be invested in when the budget allows.
Notably, in November 2023, the Department of Finance of Quang Nam Province received a document from the Department of Debt Management and External Finance (Ministry of Finance), enclosing an appendix stating that Quang Nam Province had not paid the commitment fee from November 1, 2017, to December 31, 2022, amounting to 527,743.92 USD, and the penalty interest incurred due to the non-payment of the commitment fee was 27,936.77 USD.
After receiving the “debt collection” document from the Ministry of Finance, the People’s Committee of Quang Nam Province asked the investor and relevant departments to study, review, and respond. In the response, the People’s Committee of Quang Nam Province provided reasons and requested the Ministry to recalculate the amounts.
Tran Thuong
