The Office of the People's Committee of the South-Central Province of Khanh Hoa has just announced information related to component 2 of the project.
Accordingly, regarding component 2 of the CCSEP Nha Trang project, the World Bank has disagreed with the continued use of ODA loans for the implementation of the remaining items.
Under the negotiation and signing of the loan agreement between the province’s government and the World Bank, the capital source to implement component 2 of the CCSEP project is not non-refundable aid but is re-borrowed by the provincial People's Committee. The province must repay the principal plus interest to the sponsor upon the agreement.
Based on the proposal of the Party Committee of the provincial People's Committee, the Standing Committee of the Khanh Hoa provincial Party Committee met and arrived at an agreement that the province will use the provincial budget to replace ODA loans for the next implementation of the remaining part of project component 2. At the same time, the project will also continue to apply the resettlement compensation policy framework according to World Bank regulations.
The People's Committee will submit its proposal of using capital from the provincial budget for the component 2 implementation to the provincial People's Council. Based on the opinions of the provincial People's Council, the People's Committee will complete procedures to submit to ministries and agencies for appraisal and the Prime Minister for approval of adjustments to project investment policies including adjustments of counterpart funds and extending project implementation time.
If the proposal is approved, the items under component 2 are expected to resume construction in the third quarter of 2024 and completed by the end of December 2025.
Khanh Hoa Provincial People's Committee Office said that the People's Committee will continue to direct investors and related parties to speed up implementation progress for early completion of the remaining items to synchronously complete the infrastructure in the northern region of Nha Trang City.
CCSEP Nha Trang has an investment of over US$72 million. Of US$72 million, nearly $61 million is borrowed from the World Bank and more than $11 million from local counterpart capital.
However, the World Bank has issued a written decision not to continue funding two contracts under component 2 of the CCSEP Nha Trang project on March 17 as the bank said that these items have problems with site clearance and resettlement, leading to slow progress.
