Biên Hòa-Vũng Tàu Expressway project sees cost increase of over $217m

The Sub-project 3 of the Biên Hòa-Vũng Tàu Expressway passing Phú Mỹ Town in the southern Bà Rịa - Vũng Tàu Province is under construction. VNA/VNS Photo Hoàng Nhị

BÀ RỊA - VŨNG TÀU – Due to higher land clearance costs and the addition of new interchanges, the total investment for the Biên Hòa - Vũng Tàu Expressway construction project is expected to increase by approximately VNĐ5.4 trillion (US$217.4 million) compared to the initial approved estimate, the Ministry of Transport has announced.

In a report submitted to the National Assembly (NA) on the investment for the project's first phase, Minister of Transport Nguyễn Văn Thắng stated that the first phase of the expressway will span 53.7 kilometres, with 4-6 lanes planned and an investment of over VNĐ17.82 trillion ($717.5 million).

The goal is to complete and integrate the expressway with the eastern section of the North - South Expressway and Long Thành International Airport, while also connecting major economic and port centres.

The project is divided into three sub-projects, all funded by public investment. Sub-project 1, managed by Đồng Nai Provincial People’s Committee, covers approximately 16 kilometres at a preliminary investment of over VNĐ6.01 trillion ($241.9 million).

Sub-project 1 includes two construction packages, which began in June 2023. However, only 38.4 per cent of the 137.64 hectares of required land has been handed over, limiting construction to a few bridge structures and prefabrication of components.

Sub-project 2, overseen by the Ministry of Transport, spans approximately 18.2 kilometres with a preliminary investment of over VNĐ6.85 trillion ($275.8 million). Two construction packages for this sub-project are also underway. To date, 58.05 per cent of the 176.74 hectares of land needed has been cleared, allowing work to begin on some bridge structures, underpasses, drainage systems and a few road sections.

“For sub-projects 1 and 2 in Đồng Nai Province, construction progress has not met expectations due to delays in land handover,” Thắng noted.

Sub-project 3, managed by the Bà Rịa - Vũng Tàu Provincial People’s Committee, covers 19.5 kilometres with one construction package and a preliminary investment of over VNĐ4.96 trillion ($199.7 million). The entire site for Sub-project 3 has been handed over, and contractors have begun work across the project, meeting the required progress goals.

According to Government Resolution No90/NQ-CP issued on July 25, 2022, localities were expected to hand over 70 per cent of the land for construction packages by the end of last June and to complete land clearance by the end of last December.

However, in reality, only sub-project 3 has met the land clearance requirements.

Meanwhile, compensation and resettlement efforts for the sub-projects in Đồng Nai Province have been progressing very slowly.

According to reports from localities, land clearance costs for the sub-projects have increased by approximately VNĐ3.26 trillion ($131.2 million) compared to the estimates in the total investment approved under NA Resolution 59/2022/QH15.

Specifically, sub-project 1 will see an increase of VNĐ120 billion ($4.8 million), sub-project 2 an increase of over VNĐ1.27 trillion ($51.1 million) and sub-project 3 an increase of over VNĐ1.87 trillion ($75.2 million).

"The rise in land clearance costs has led to the total project investment exceeding the initial estimate approved by the NA, necessitating adjustments to the investment policy," Thắng said.

Meanwhile, for sub-project 3, the Bà Rịa - Vũng Tàu Provincial People’s Committee has proposed adding the Mỹ Xuân - Ngãi Giao interchange to enhance transportation capacity and connect the Cái Mép - Thị Vải Port area with Long Thành International Airport.

This addition would increase costs by an estimated VNĐ1.58 trillion ($63.6 million), including VNĐ768 billion for construction and VNĐ813 billion for land clearance.

As a result, the total project investment is expected to increase by around VNĐ5.4 trillion.

The Ministry of Transport is currently conducting an internal assessment of the project’s adjusted investment policy and preparing to submit it to the relevant authorities as required.

On this basis, the Government has requested the NA and the NA's Standing Committee to address the ongoing issues related to land clearance, resettlement and the relocation of technical infrastructure.

The Government also emphasised the need for solutions to the shortage of construction materials to ensure the project can go ahead as planned.

Furthermore, it has called for close coordination between the Ministry of Transport and other relevant ministries and agencies to strengthen management and supervise the project’s implementation in compliance with legal regulations.

The Government has also requested that the NA consider and approve the project's adjusted investment policy to ensure the availability of capital. – VNS