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Proposed Special Mechanisms and Policies for Ho Chi Minh City – Ring Road 4 Project

(News Portal – Dong Nai) – The People's Committee of Ho Chi Minh City has submitted a document to the Prime Minister proposing several special mechanisms and policies aimed at accelerating the implementation of the Ring Road 4 – Ho Chi Minh City construction project.

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The segment of Ring Road 4 – Ho Chi Minh City passing through Dong Nai province ends before the Thu Bien Bridge abutment in Tan An Commune, Vinh Cuu District. Photo: Archive. 

Pre-Feasibility Study Report Nearly Complete

The Ring Road 4 - Ho Chi Minh City is a critical project contributing to the economic and social development of provinces in the Southeast Region and the Southern Key Economic Zone. The road will enhance regional traffic connectivity, facilitate the flow of goods, and reduce logistics costs. According to a pre-feasibility study conducted by the local authorities, the total length of Ring Road 4 - Ho Chi Minh City is approximately 207 km.

Currently, the localities involved have essentially completed the pre-feasibility study for Phase 1 of the component projects. Specifically, for the Phu My - Bau Can segment, the People's Committee of Ba Ria - Vung Tau Province is the designated authority; for the Bau Can - Thu Bien Bridge segment (excluding Thu Bien Bridge), Dong Nai Province is the designated authority; for the Thu Bien Bridge - Sai Gon River segment (including Thu Bien Bridge but excluding the Sai Gon River crossing), the People's Committee of Bình Dương Province is the designated authority; for the segment from the Sai Gon River crossing to the Thay Cai Canal (including Phu Thuan Bridge over the Sai Gon River and Thay Cai Canal Bridge), Ho Chi Minh City is the designated authority; and for the Thay Cai Canal - Hiep Phuoc segment (including the area passing through Hiep Phuoc in Nha Be District, Ho Chi Minh City), the People's Committee of Long An Province is the designated authority.

It is expected that the provinces of Ba Ria - Vung Tau, Dong Nai, and Ho Chi Minh City will submit their component projects for investment approval in the fourth quarter of 2024. In Bình Dương Province, the Provincial People's Council approved a resolution to adjust the investment policy for the project using the public-private partnership (PPP) model in late January 2024. Currently, Binh Duong's authorities are preparing feasibility study reports for the component projects.

In the same document, the Ho Chi Minh City People's Committee mentioned that the total investment for Phase 1 of the Ring Road 4 - Ho Chi Minh City project is over VND 128 trillion.

Proposed Special Mechanisms and Policies

According to the Ho Chi Minh City People's Committee, during the project's research and documentation phase, localities have encountered several challenges, particularly regarding implementation mechanisms, with the most significant obstacle being funding.

For instance, the segment passing through Dong Nai Province, according to Vo Tan Duc, Chairman of Dong Nai Province People's Committee, has a total investment requirement of over VND 19 trillion, of which the state's contribution is about VND 9.2 trillion. However, public investment funds have already been allocated for projects in the 2021-2025 medium-term public investment plan, making it difficult to balance the provincial budget for this project.

To expedite the project's progress, the Ho Chi Minh City People's Committee, in coordination with the Ministry of Transport and the relevant localities, has agreed that special mechanisms and policies should be proposed for the entire project and submitted for approval as a basis for implementation.

Specifically, the proposal suggests empowering provincial People's Committees to act as project owners, allowing them to use local budgets and other legal funding sources for the project. Local budgets can also be used to support neighboring localities in carrying out public investment activities for cross-boundary projects.

Additionally, the proposal calls for the central government to cover 50% of the local budget contribution for Bình Dương, Dong Nai, and Ba Ria - Vung Tau provinces, while covering 75% for Long An Province. The proposal also seeks permission for the state's contribution to not exceed 70% of the total project investment. It suggests that the total investment value of each locality's projects be allowed to roll over into the 2026-2030 medium-term public investment plan without being counted towards the total investment for other programs and projects in each locality's subsequent medium-term public investment plan.

Moreover, the Ho Chi Minh City People's Committee proposed special mechanisms and policies related to adjusting planning, authorizing investment decisions, managing the exploitation of minerals for construction materials, overseeing post-investment project management, settling investment capital, and direct contractor appointments for certain tender packages.

With these proposals, the Ho Chi Minh City People's Committee has requested that the Prime Minister approve the drafting of a resolution to be submitted to the National Assembly, which would introduce special mechanisms and policies for the Ring Road 4 - Ho Chi Minh City project. This resolution would help resolve existing difficulties and expedite the project's implementation. The committee also seeks authorization to collaborate with localities and consulting firms to study and develop special mechanisms and policies for the project's overall implementation. The Ministry of Planning and Investment is tasked with leading the coordination with the Ministry of Transport and other relevant ministries and agencies to appraise and report to the Prime Minister in September 2024, with the goal of submitting the proposal to the National Assembly by the year-end session of 2024. ​

Author: Vinh Quang

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