23-Sep-2022 Intellasia |
The Saigon Times |
The Ho Chi Minh Road bypass in the east of Buon Ma Thuot City, Dak Lak Province has been lagging behind schedule and facing a massive cost overrun of over VND330 billion, according to local media.
Work on the bypass started in December 2021 and was then expected to be completed in 2023. However, the project bidding packages No.3 and No.4 are less than 9 percent complete due to site clearance delays.
The 39-kilometer bypass requires an estimated VND1.5 trillion from the State Budget.
The site clearance area is nearly 117 hectares, with 1,388 households affected. The site clearance cost totals almost VND400 billion.
Up to now, over VND275 billion of the site clearance cost has been disbursed by the local authority.
Over 115 hectares of land has been cleared, completing above 98 percent of the site clearance work. The local authority handed over cleared land for 21 kilometers of the bypass.
After months of delays, the site clearance of the project is expected to need an extra VND720 billion, which means the project is facing a cost overrun of over VND331 billion.
The reason for the cost overrun is the increase in land, building material and labour costs, according to the local authority.
Category: Business, Vietnam
Article source: https://www.intellasia.net/ho-chi-minh-road-bypass-faces-cost-overrun-1094689