Home Real Estate The New and Improved Bien Hoa-Vung Tau Expressway: A $24,000 Crore Venture

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The New and Improved Bien Hoa-Vung Tau Expressway: A $24,000 Crore Venture

21 December, 2024

The Bien Hoa-Vung Tau Expressway’s construction site has been handed over, but it still lacks the necessary land area to commence simultaneous construction work across the entire site. – Photo: Lao Dong Newspaper

While there has been positive progress in the land handover process for the construction of Component Project 1 and Component Project 2 (under the management of Dong Nai province), according to a report by the Ministry of Transport, the handed-over land area is still insufficient to initiate simultaneous construction work on the site. For Component Project 1, approximately 67% of the land has been handed over, while Component Project 2 has achieved a handover rate of about 93.43%.

The relocation areas intended for the clearance of Component Project 1’s construction site (in Bien Hoa city) have not yet commenced construction. Similarly, the relocation areas for Component Project 2 (in Long Thanh district) remain incomplete. The relocation process for technical infrastructure projects is progressing slowly, and the relocation and restitution of these projects will be time-consuming and procedurally complex, especially for power lines above 35KV and water supply pipes with a diameter above 500. Consequently, this will impact the construction schedule of the project.

Priority given to handing over sites requiring soil improvement

Given the circumstances, the Ministry of Transport has requested that Dong Nai province direct and urge relevant agencies to focus on resolving these challenges. They should expedite the compensation process, hasten the relocation of technical infrastructure projects, and accelerate the construction of relocation areas, especially the two areas in Bien Hoa city. Priority should be given to handing over sites that have completed the necessary legal procedures, as well as sites requiring soil improvement, bridges, culverts, and tunnels, to enable contractors to commence construction work. Additionally, it is important to expedite the payment process for affected individuals to facilitate the timely completion of land handover.

Regarding the source of filling material, Dong Nai province has only approved the exploitation of mines in Phuoc Binh commune and Tam Phuoc ward, providing approximately 1.2 million cubic meters out of the required 5.2 million cubic meters for both Component Project 1 and Component Project 2. With a shortfall of approximately 4 million cubic meters of filling material, it is essential to identify additional sources promptly to ensure the project’s timely completion.

The Bien Hoa-Vung Tau Expressway project has a total length of approximately 53.7 kilometers, with 34.2 kilometers in Dong Nai province and 19.5 kilometers in Ba Ria-Vung Tau province. The expressway is designed for speeds up to 100 km/h, with a cross-section of 4-6 lanes in the first phase and an expansion to 6-8 lanes in the completed phase.

The project is scheduled for substantial completion by 2025 and full operation by 2026, in alignment with the resolutions of the National Assembly and the Government.

The Ministry of Transport has requested that Dong Nai province consider approving the continued exploitation of mines in Phuoc Binh commune and Tam Phuoc ward, in line with their reserves. Additionally, they should provide support, guidance, and permission for contractors to conduct surveys and carry out necessary procedures for exploitation under special mechanisms at other mines, such as those in the Pe Noi and 309 hills in Cam My district.

Furthermore, the People’s Committee of Dong Nai province has requested the Prime Minister’s permission to collect filling material from a portion of the planned area (187 hectares) for the T3 station of the Long Thanh International Airport. The Ministry of Natural Resources and Environment has provided guidance to the locality for implementation. However, the Department of Natural Resources and Environment has not yet issued an official opinion or provided consultation on the plan to utilize this source of filling material for the construction of the project.

Adjustment of investment policy is necessary

With the increase in site clearance costs, the addition of interchanges, bridges, and toll systems, among other factors, it is imperative to adjust the total investment capital for the Bien Hoa-Vung Tau Expressway project.

Specifically, the site clearance costs for the component projects are estimated to be approximately VND 4,080 billion higher than the costs included in the total investment capital approved by Resolution 59/2022/QH15. This increase in site clearance costs leads to a total investment that surpasses the preliminary figure approved by the National Assembly, necessitating an adjustment to the investment policy.

The project requires the addition of the My Xuan-Ngai Giao interchange (connecting to Provincial Road 991) in Component Project 3, with a total cost of VND 1,581 billion. Additionally, there are updates to construction costs, the inclusion of bridges within the interchange, the toll system, weight control stations, and other factors, amounting to VND 619 billion.

Consequently, the projected adjusted total investment capital is approximately VND 6,280 billion higher than the figure approved by the National Assembly, increasing from VND 17,837 billion to VND 24,117 billion.

Currently, the Ministry of Transport has requested the People’s Committee of Dong Nai province to clarify the increase in compensation, support, and resettlement costs for Component Projects 1 and 2. This information will serve as a basis for completing the internal appraisal and the dossier for adjusting the investment policy of the project, which will then be submitted to the competent authority for approval, in accordance with regulations.

Nhat Quang