ASEAN KEY DESTINATIONS
Cash shortage delays Vietnamese projects
Work also needs to be done on National Highway 51, which links two key southern economic zones in Bien Hoa in Dong Nai province. Another unfinished work-in-progress is the Gie-Ninh Binh Highway near Ha Noi.
Minister Dinh La Thang said his staff would cooperate with the ministries of Finance and Planning and Investment to speed up the projects.
Thang said they would also provide mechanisms to mobilize capital for infrastructure, administrative procedures and investment models.
He has asked ministries to give guidance in paying for suspended projects according to Resolution 11, which required some projects to halt in order to stabilise the macro-economy.
Under the resolution, 116 ministry projects have been delayed. However, the ministry has not been able to implement administrative procedures because the Government did not specify which categories of project should be delayed.
Tran Quoc Viet, head of the Construction Management and Traffic Quality Department said a lack of oversight could make it difficult for investors to adjust prices and determine the time frame.
Deputy general director of Project Management Unit 1 Nguyen Quoc Binh said the project to upgrade the section of National Highway 6 through Tuan Giao District in northern Lai Chau Province was given VND75 billion (US$3.6 million) from the ministry while its total investment was VND2.4 trillion ($115 million).
Binh said the money was not enough to pay contractors and the project had a debt of VND100 billion ($4.9 million).
"All of our 15 packages had broken ground and mobilised the machines to be ready for construction under signed contracts. Slow-moving projects caused congestion in the process," he added.
Deputy general director of Project Management Unit 2 Lam Van Hoang agreed, saying they did not have the funds to finish the project, and the incomplete work could be destroyed at any point due to floods and storms.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below