On 27/8, Deputy Prime Minister Vuong Dinh Hue, together with department-level, Central-level leaders have gathered and worked closely with leaders of An Giang Province on the performance of the mission on economic and social development. At this meeting, the Deputy Prime Minister expressed his concern for the timely implementation of Trung luong – My Thuan (TL-MT) expressway.
Deputy Prime Minister worked with leaders of Tien Giang Province
The current problem regarding TL-MT project is the inability to release funding money. At the meeting, Mr. Ho Minh Hoang – Chairman of Board of Directors of BOT TL-MT Joint Stock Company said that the project has been stuck in limbo for 10 years, with only 10% quantity of work completed; after the restructuring of management, adjustment of capital contribution, eliminating 3 weak investors (whose capital contribution remains zero), from early April 2019 to the present, the quantity of work has increased to 25%. Investors have contributed 2,500 billion Vietnam Dong into the project. Tien Giang Province also pitched in for help, providing 300 billion Vietnam Dong for site clearance and signing of contract annexure, adjustment of total capital investment...
However, until now, the support capital of the state budget (largely for site clearance in which investors have paid in advance) and credit capitals from commercial banks are still not disbursed. “This is unfair and caused problems for the project. If not funded as committed, we will have to stop the construction in order to renegotiate project completion time. Without money, we cannot complete the expressway on schedule by 2020, to start exploitation by 2021 according to the wish of the Government and our people” – Mr. Ho Minh Hoang said.
Deputy Prime Minister came to check on Trung Luong – My Thuan expressway
The expressway TL-MT project with the latest total capital investment as adjusted is more than 12,500 billion Vietnam Dong. According to agreement with other banks, investors have managed to acquire 3,400 billion Vietnam Dong (over 27%). The Government committed to support 2,186 billion Vietnam Dong and the same for commercial banks with more than 7,000 billion of credit capitals provided. However, currently the support capital of the state budget and other commercial banks are still on papers after much commitment.
At the meeting, Deputy Minister of Ministry of Finance – Tran Xuan Ha said that on 28/8, the Finance, Budget Committee of the National Assembly shall finish reporting on the use of Central budget increment in 2018 to arrange for Trung Luong – My Thuan project, to be submitted to the Standing Committee of National Assembly in 9/2019.
Organizing construction works at Trung Luong – My Thuan expressway project site
Before, this amount of money was submitted to the National Assembly by the Government, to which the National Assembly has not expressed its opinion. The sponsoring banks (with Vietinbank at the forefront) also said that in the coming days, the bank shall sit down with leaders of Tien Giang Province (as the state competent authority of the project) to calculate at the earliest time the capital source for the project. After listening to reports of other Ministries, Deputy Prime Minister Vuong Dinh Hue confirmed that the National Assembly, Standing Committee of National Assembly and the Government particularly expressed special concern for this project. “Upon approval of the Standing Committee of National Assembly, the Government shall immediately draft capital assignment in writing to Tien Giang. Credit facilities, investors should not worry about this”, said the Deputy Prime Minister.
Deputy Prime Minister came to check on Trung Luong – My Thuan expressway
Initially, the Deputy Prime Minister proposed investors to continue using its capital so that the project can continue its implementation, at the same time to immediately negotiate with other banks for facility agreement so that when the Prime Minister and Tien Giang province assigned the intended capital, such agreement shall be signed by 9/2019 and further accelerate the project in 9/2019.
“Chairman of the Board of Directors of BOT TL-MT undertook that the expressway would be inaugurated by 2020, available for use by 2021 if capital is fully provided. The investors have all made such commitment, so too are credit facilities, even the Government capital was submitted to the National Assembly for review, all of which shown just how willing we are to bring the project back on schedule. And we must. Don’t let Members of the National Assembly hear the same excuses at National Assembly forum like yesterday: “Like the Western expressway/Again and again unfinished...”, said the Deputy Prime Minister.
Referring to the earlier announcement of BOT TL-MT Company, if by 8/2019 the company is still not funded with the support capital of the Government amounting to 2,186 billion Vietnam Dong and over
7,000 billion Vietnam dong of capital loan, the project shall be put on hold, so said Mr. Ho Minh Hoang: “Since the investors have confided in the Government and the people, we have to try even harder despite not having been funded. However, if by September and the situation is not improved like the parties have promised, this time we will have to cease the construction to renegotiate its completion time. Without the necessary amount of money, we cannot continue the work, for we have expensed too much without reciprocity.” Nevertheless, he believed that this time the promise of leaders of the Government and the banks shall be fulfilled.
At the end of the meeting, Deputy Prime Minister Vuong Dinh Hue told the press: “Television channels and journalists must record in both sound and visual theses promises so that we can look back on this, and don’t make promises that you can’t keep!”.
Dang Phuong
