The Ministry of Planning and Investment (MPI) has raised concerns over Tuan Chau Group’s proposal to construct a USD3 billion avenue.

The MPI has asked HCM City authorities to consider the project which has been recommended to be implemented under the form of build-transfer (BT). The 59 kilometre long route will include 9.5 kilometres in inner-city districts. 

The avenue project expected to cost USD3 billion

In July this year, Tuan Chau Group proposed to HCM City authorities to build the avenue along the Saigon River. To carry out the project, the firm asked the city to provide a reciprocal land fund of 12,398 hectares, equal to 5% of the city’s total area.

The group has also recommended using around VND10 trillion (USD454.5 million) of the public investment capital for the project implementation.

According to the MPI, HCM City Department of Planning and Investment needs to ask the investor to clarify some contents such as documents to prove the investors’ capacity and experience.

The group also has to clarify whether the project is suitable for HCM City’s transport development planning by 2020 and the city’s overall socio-economic planning.

The MPI said that for projects which need at least VND10 trillion of the public investment capital has to be submitted to the National Assembly for consideration.

Regarding Tuan Chau Group’s proposal for the land fund of 12,398 hectares, the MPI said that this should be carefully considered given HCM City’s limited land.

HCM City has to seek opinions from different ministries and agencies for the project as well as its impact on the city.

The MPI also noted that the project is not listed for the appointment of contractors so tendering would be required.  

dtinews