Amid risks of delays for the Ho Chi Minh City– Moc Bai Expressway due to insufficient land clearance funding, the Ho Chi Minh City People’s Committee proposed providing Tay Ninh Province with VND1,806 billion (US$68.5 million) from the city budget to help overcome obstacles for one of the most important interregional infrastructure projects in the Southeast region.
The municipal People’s Committee has recently submitted a report to the Ho Chi Minh City People’s Council on the policy of using development investment capital from the city budget to support Tay Ninh Province with VND1,806 billion (US$68.5 million).
The funds will cover compensation, support and resettlement for component 4 of the Ho Chi Minh City – Moc Bai Expressway project for Phase 1. This proposal is applied under Article 5 of Resolution No. 98/2023/QH15 on piloting certain special policies for HCMC’s development.
According to the report, Phase 1 of the Ho Chi Minh City – Moc Bai Expressway is 51 kilometers long, of which 26.3 kilometers passes through Tay Ninh Province. This is a key interregional transport infrastructure project implemented under the PPP (public-private partnership)-BOT (build-operate-transfer) model, with a total investment of over VND19,617 billion (US$745 million). The initial approved budget for site clearance in Tay Ninh Province, component 4, was VND1,504 billion (US$57.1 million).
However, during implementation, compensation costs increased sharply to VND3,749 billion (US$142 million) due to adjustments and additional measures to address residents’ requests in Trang Bang and Go Dau areas. Of this amount, Tay Ninh Province can allocate VND439 billion (US$16.7 million) from its resources and has requested Ho Chi Minh City’s support of VND1,806 billion (US$68.5 million) to ensure progress.
The Ho Chi Minh City People’s Committee assessed that the project has regional and interregional connectivity significance and serves as a driving force for socio-economic development in the Southeast region. The financial support for Tay Ninh Province also follows the State Budget Law (Point d, Clause 5, Article 9), which permits local governments to use development investment funds to aid other provinces in interregional projects and major infrastructure works.
The VND1,806 billion (US$68.5 million) will be drawn from Ho Chi Minh City’s 2025 city-level budget contingency fund. After adjustments, the remaining contingency fund exceeds VND5,479 billion (US$208 million), sufficient to cover the proposed support.
Ho Chi Minh City proposed the financial support in cash, rather than through direct investment, to shorten procedures and ensure timely site clearance. Once approved by the Ho Chi Minh City People’s Council, the city will transfer the funds, and Tay Ninh will be responsible for managing, using and finalizing the budget in accordance with legal regulations.
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