The long-delayed flood prevention project in HCM City. — Photo giaothong.tapchixaydung.vn

HCM CITY — The HCM City People’s Committee has asked the Prime Minister and the State Bank of Việt Nam (SBV) to approve special financial mechanisms to help revive its long-delayed flood prevention project.

In its proposal, the city requested that the SBV cut the refinancing loan interest rate for the project from two per cent to zero per cent per year and temporarily suspend debt recovery from the Bank for Investment and Development of Việt Nam (BIDV).

The move aims to ease financial pressure, prevent additional costs, and create favourable conditions for contract negotiations among stakeholders.

The city also asked the Government to allow BIDV to classify the project loan as Group 1 debt, citing its designation as a nationally significant project that directly serves socio-economic development.

Such a classification would enable BIDV to continue disbursements and support the project’s completion.

The proposal was made in line with Government Resolution No. 212/NQ-CP issued on July 21, 2025, which requires the removal of legal and financial obstacles to ensure the project’s completion in 2026 — 10 years after its groundbreaking.

Launched in June 2016, the project is being developed by Trung Nam BT 1547 Co., Ltd, a subsidiary of Trung Nam Group, with an investment of more than VNĐ10 trillion (US$438.3 million). 

Phase 1 includes seven key components: six tide-control sluice gates and 7.8 kilometres of embankments along the Sài Gòn River.

By late 2023, over 90 per cent of the work had been completed, with cumulative disbursement reaching VNĐ8.27 trillion ($362.5 million), while around VNĐ1.8 trillion ($78.9 million) in capital remained outstanding.

However, construction was suspended at the end of 2020 due to legal disputes and financial difficulties related to the build-transfer (BT) contract, payments, and land clearance.

Covering an area of 570sq.km with a population of 6.5 million, the project is designed to protect central and southern parts of the city from tidal flooding and heavy rainfall while enhancing climate change resilience.

On August 23, the city established a special task force led by the municipal People’s Committee vice chairman Bùi Xuân Cường to coordinate with relevant agencies, accelerate contract negotiations, review investment costs, and push for final completion.

The city stressed that approval of the proposed financial support measures would provide a crucial foundation to resume and speed up construction.

Once operational, the project is expected to play a pivotal role in controlling flooding and safeguarding livelihoods in the country’s largest urban centre. — VNS