Minister of Construction Tran Hong Minh presents the Proposal on the investment policy for the Quy Nhon-Pleiku Expressway project
Presenting the Government’s Proposal on the investment policy for the Quy Nhon-Pleiku Expressway project, Minister of Construction Tran Hong Minh emphasized the necessity and objectives of investing in the Quy Nhon-Pleiku Expressway.
Accordingly, the project aims to form an East-West axis connecting the Central Highlands with the South Central Coast, linking the north-south transport system (including the North-South Expressway in the East, the North-South Expressway in the West, Ho Chi Minh Road, Truong Son East Road, National Highway 1, and the coastal road), maximizing the efficiency of completed and ongoing projects, and meeting transport demands.
At the same time, it will create room and motivation for regional development with a synchronous and modern system of technical and social infrastructure, connecting economic and seaport centers, enhancing competitiveness, and promoting inter-regional linkage, cooperation, and development.
The project starts at National Highway 19B in An Nhon Town, Binh Dinh Province, and ends at Ho Chi Minh Road in Pleiku City, Gia Lai Province. The total length is approximately 125 km, with about 40 km in Binh Dinh Province and 85 km in Gia Lai Province.
The project passes through An Nhon Town and Tay Son District in Binh Dinh Province, and An Khe Town, Dak Po District, Mang Yang District, Dak Doa District, and Pleiku City in Gia Lai Province.
The preliminary total investment for the project is VND 43,734 billion. The proposed source of capital is the state budget from increased revenue and cost savings in the state budget for 2024, as well as central and local budgets for the periods 2021-2025 and 2026-2030.
The project preparation and implementation are scheduled to start in 2025, with completion expected in 2029. Some specific mechanisms, policies, and solutions will be applied to carry out the project.
To expedite the completion of the Quy Nhon-Pleiku Expressway and create a driving force for socio-economic development while ensuring national defense and security, the Government proposes that the National Assembly decide on the investment policy for this project.
Chairman of the National Assembly’s Committee for Economic and Financial Affairs, Phan Van Mai, presents the Verification Report
Presenting the Verification Report, Mr. Phan Van Mai, Chairman of the National Assembly’s Committee for Economic and Financial Affairs, stated that the project meets the criteria for important national projects under the National Assembly’s authority to decide on investment policies according to Article 8 of the Law on Public Investment.
Regarding the division of the project into sub-projects, the Government proposed dividing it into two sub-projects based on the administrative boundaries of Binh Dinh and Gia Lai provinces.
However, considering the ongoing reorganization and merger of provincial-level administrative units, it is expected that Binh Dinh and Gia Lai provinces will merge to form Gia Lai province. In that case, the project will be located entirely within one province. Therefore, it is recommended to study a suitable division of sub-projects that aligns with the merger plan, the local management capacity, and the technical requirements of the project to ensure its synchronicity, unity, and effectiveness.
Concerning capital sources and the ability to balance capital, the Committee for Economic and Financial Affairs requested that the Government provide supplementary reports on the verification of capital sources and the ability to balance capital for the project, in accordance with the current Law on Public Investment.
Regarding the specific mechanisms and policies, especially for project implementation, it is necessary to apply some specific mechanisms and policies to ensure the progress and effectiveness of the project. The Government proposed nine groups of specific mechanisms and policies, most of which have been approved by the National Assembly for other important national projects in the past, providing a basis for the Government’s proposal.
However, some policies have been adjusted compared to similar policies applied to previous projects (for example, Policy 7 on mineral exploitation for construction materials for the project. The Government proposes that the sub-projects for site clearance be applied with mechanisms for material mines, while previous projects were only allowed to apply this to the main construction items of the project…).
Therefore, it is recommended to provide further clarification on the adjustment of these policies. At the same time, it is necessary to thoroughly review the applied mechanisms and policies to ensure their feasibility and suitability for the nature and objectives of the project.
Consider Adjusting the Investment Policy for the Bien Hoa-Vung Tau Expressway Project
The Bien Hoa-Vung Tau Expressway project was approved by the National Assembly in Resolution No. 59/2022/QH15 dated June 16, 2022, including the construction of approximately 53.7 km of expressway with a designed speed of 100 km/h, a scale of 4-6 lanes, and a preliminary total investment of VND 17,837 billion, divided into three sub-projects.
The investment capital sources include: State budget for the period 2021-2025 of VND 14,270 billion, of which VND 11,000 billion is from the central budget, and VND 3,270 billion is from the local budget (VND 2,600 billion from Dong Nai province and VND 670 billion from Ba Ria-Vung Tau province); and central budget for the period 2026-2030 of VND 3,567 billion.
The project is expected to be substantially completed by 2025 and fully operational by 2026.
Presenting the Proposal on adjusting the investment policy for the first phase of the Bien Hoa-Vung Tau Expressway project, Minister of Construction Tran Hong Minh stated that during the implementation process, some factors have emerged that have increased the total investment of the sub-projects approved by the Ministry of Construction and the People’s Committees of Dong Nai and Ba Ria-Vung Tau provinces, leading to an increase in the preliminary total investment of the project approved by the National Assembly.
The Bien Hoa-Vung Tau Expressway project has been affected by fluctuations in compensation rates in Dong Nai and Ba Ria-Vung Tau at the time of land revocation compared to the expected rates. The project must also include an additional interchange connecting to the My Xuan-Ngai Giao Road.
Moreover, there has been an increase in investment costs due to fluctuations in material prices, labor rates, and construction equipment rental rates at the time of designing and approving the technical design and cost estimate for the construction in 2023 compared to the time of formulating the investment policy; and additional investment in the item of vehicle weight inspection station according to QCVN 66:2024/BGTVT…
The Government proposes that the National Assembly approve an increase in the total investment of the project from VND 17,837 billion to VND 21,551 billion (an increase of VND 3,714 billion). Adjust the capital sources as follows: State budget for the period 2021-2025 is VND 17,124 billion (an increase of VND 2,854 billion), including VND 12,144 billion from the central budget and VND 4,980 billion from the local budget (VND 2,969 billion from Dong Nai province and VND 2,011 billion from Ba Ria-Vung Tau province); and central budget for the period 2026-2030 is VND 4,427 billion (an increase of VND 860 billion).
Presenting the Verification Report, Mr. Phan Van Mai, Chairman of the National Assembly’s Committee for Economic and Financial Affairs, stated that the Committee basically agreed with the necessity of adjusting the investment policy for the project for the reasons presented by the Government.
However, the verifying agency requested to clarify further the objective and subjective reasons and the responsibility of relevant agencies, organizations, and individuals in the inadequate preparation for project investment, leading to increased compensation, support, resettlement costs, and investment costs compared to the preliminary total investment approved by the National Assembly for the Bien Hoa-Vung Tau Expressway project. The competent agencies should also clarify the capital sources and the ability to balance capital for the project…
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