According to the conclusion of Standing Deputy Prime Minister Pham Gia Tuc regarding phase one of the tidal flood prevention project in Ho Chi Minh City, the city currently possesses sufficient authority to resolve remaining issues. BIDV, the intermediary responsible for receiving and re-lending capital from the State Bank for the project, has also proposed a plan to support the investor in completing the work this year if Ho Chi Minh City allocates the necessary land.

The government leader has instructed the Chairman of the Ho Chi Minh City People's Committee to direct relevant units to coordinate with the investor and promptly resolve all outstanding project issues. This resolution must be timely, comply with regulations, and prevent any losses, waste, damage to the State, or negative impacts.

Muong Chuoi tidal sluice gate, part of the project. Photo: Thanh Tung

The Ministry of Finance, the State Bank, BIDV, and other relevant agencies are tasked with coordinating and guiding Ho Chi Minh City in overcoming implementation challenges. The investor must also proactively work with the city to finalize a resolution plan, ensuring the project's completion in 2026. The Chairman of the Ho Chi Minh City People's Committee and the investor will be held responsible if the project is not completed on schedule.

The tidal flood prevention project commenced in 2016, with an initial total investment of nearly 10 trillion VND under a BT (Build-Transfer) contract, with Trung Nam Group as the investor. The project comprises large tidal sluice gates and a system of embankments along the Saigon River, designed to control flooding for an area spanning approximately 570 square kilometers, home to around 6.5 million residents.

After 10 years of implementation, over 90% of the work has been completed. However, the project has repeatedly stalled due to legal complications and issues with the land fund payment mechanism for the investor. During the previous two terms, the government issued two resolutions to address these difficulties, yet the project remains inoperable. The total investment has now escalated to over 14.4 trillion VND.

Location of the six tidal sluice gates for the 10 trillion VND anti-flooding project. Graphic: Khanh Hoang

In a report to the Prime Minister, the Ho Chi Minh City People's Committee stated that challenges persist regarding the BT contract payment. The city has proposed paying for seven land lots as per the signed contract, with the difference between the project value and the land fund to be covered by the budget. Conversely, Trung Nam Group seeks full payment for the project's value in land, based on the principle of equal value, referencing the State Audit's conclusion.

The seven land lots the city plans to use for payment have a total value of approximately 4,983 billion VND, which is less than one-third of the adjusted total investment. If the investor's proposal is adopted, Ho Chi Minh City would need to allocate additional land funds for payment.

The city also raised the possibility of terminating the BT contract and converting the remaining portion of the project to public investment if an agreement cannot be reached with the investor. However, the Ministry of Finance noted that this approach would involve numerous legal procedures, while the project must be completed in 2026. Therefore, Ho Chi Minh City must thoroughly assess the feasibility, potential impacts, and bear responsibility for its chosen course of action.

Giang Anh