HCM City seeks ODA for traffic, environment projects
VietNamNet Bridge – The HCMC government is seeking official development assistance (ODA) for the second phase of the environmental hygiene project, the green traffic development project, and the sustainable urban development project for the Metro Line No. 2.
The municipal government last week asked the Ministry of Planning and Investment to soon submit the above projects to the Prime Minister for consideration, hoping they will be put on the list of projects eligible for ODA funding.
The second phase of the environmental hygiene project alone costs some US$470 million and should be carried out from 2015 to 2019. It will finish collecting and treating wastewater in the Nhieu Loc-Thi Nghe Canal basin and in District 2.
The project consists of an 8-km sewer line leading wastewater from Nhieu Loc-Thi Nghe Canal to a treatment facility with a capacity of 480,000 cubic meters per day in Thanh My Loi Ward, District 2.
HCMC is currently managing three completed ODA-funded projects and 25 others under construction. These projects cost a total of nearly VND118.6 trillion, with VND98 trillion sourced from ODA and VND20.6 trillion from the city’s budget.
The city will continue to raise ODA funds for important traffic and infrastructure projects like the Metro Line No. 5 and the Ben Thanh central station.
The major problems for ODA-funded projects are site clearance, infrastructure relocation, payment for arising components, rising costs due to slow progress, and traffic regulation at construction sites.
In the first quarter, disbursement for key projects like the second phase of the Soai Rap River dredging project and the Metro Line No. 2 from Ben Thanh to Tham Luong was quite satisfactory.
As for the Metro Line No. 1 from Ben Thanh to Suoi Tien, VND14 trillion worth of ODA was disbursed in the first three months, equivalent to 15% of the loan agreement. The metro line project comprises four main packages with many components to be constructed this year.
Late this year, the city will invite tenders for the underground section from Ben Thanh Market to the City Opera House (package 1a)
Meanwhile, bidding documents for the underground section from the City Opera House to Ba Son Shipyard (package 1b) are being evaluated. Work will start on this package in late 2013.
Package 2 for building the elevated section and the maintenance station kicked off in August 2012.
Package 3 includes purchase of mechanical and electrical equipment, locomotives and wagons, development of approach roads and maintenance. The city is in talks with the Hitachi-Hitachi Plant Technologies contractor consortium over this package, and it is expected that a deal will be inked this quarter.