HCM CITY — Construction of HCM City’s Beltway No 2 is unlikely to be finished next year as planned since many sections are making slow progress.

The 64km road begins at the Gò Dưa Flyover Intersection (on National Highway No 1A in Thủ Đức District), passes through the Bình Phước Flyover – An Sương Intersection, An Lạc Cross-roads,  Nguyễn Văn Linh – Trịnh Quang Nghị Crossroads, the Phú Mỹ and Rạch Chiếc bridges, and Linh Đông crossroads before returning to the Gò Dưa Intersection.

According to the city Department of Transport, construction of sections measuring a total of 14km, comprising four sub-projects, remain incomplete.

These sections are being built by Văn Phú Bắc Ái JSC under a built – transfer (BT) contract at a cost of VNĐ2,527 billion (US$111.3 million).

The city’s decision to suspend all BT contracts is another reason for the delay in the construction.

Waiting for money, new policy

According to the transport department, relevant agencies have approved a sub-project involving the construction of the 5.3km section from An Lạc Crossroads to Nguyễn Văn Linh Street.

Meanwhile, feasibility studies for the sections from the Phú Hữu Bridge (in District 9) to the Hà Nội Highway and from the Hà Nội Highway to Phạm Văn Đồng Street (in Thủ Đức District) have yet to be approved.

They were approved as BT projects while the Department of Planning and Investment has envisaged them as public-private-partnership, or PPP, projects.                 

Nguyễn Văn Tâm, deputy director of the transport department, said setting up financial sources for construction of these sections is one of the major challenges facing the developer of the project.

In case of BT projects, there must be lands of equivalent value to hand over to investors, but the city does not have them.

Using official development assistance loans for the project would exert more pressure on the State’s coffers, Tâm said.

Problems related to compensation for lands remain are among the biggest challenges to the progress of the work.

Tâm said the department has petitioned the People’s Committee for funds for paying compensation for lands in the stretches from Phú Hữu Bridge to Hà Nội Highway and Hà Nội Highway to Phạm Văn Đồng Highway, and they have been sanctioned.

So construction of the Phú Hữu Bridge-Gò Dưa Intersection stretch will be speeded up, Tâm said. —VNS.