HCM City has invested in many road projects under the BOT (Build-Operate-Transfer) and BT (Build-Transfer) investment forms. (Photo en.nhandan.org.vn) HCM City (VNA) - The Government Inspectorate hasfound irregularities in the management of BOT(Build-Operate-Transfer) and BT (Build-Transfer) projects in Ho Chi Minh City,including the use of inappropriate contractors.
The Inspectorate’s report, which examined the implementation of BTand BOT projects in HCM City, found that the city was mobilising resourcesproperly to invest in infrastructure, but had several shortcomings ininvestment preparation, including the publication of lists of projects,selection of investors, and preparation and approval of reports on projectfeasibility.
In addition, shortcomings were found during the investmentexecution process, which included contract signing, project progress, biddingand selection of contractors, acceptance of payments, and maintenance.
Based on the findings, the Inspectorate recommended that PrimeMinister Nguyen Xuan Phuc instruct the ministries of transport, construction,finance, and planning and investment as well as the city People’s Committee totake action to remedy the situation.
The Inspectorate asked the ministries of planning and investment,finance and transport to work with the Government on issuing appropriatedocuments or regulations on paying back the capital of BOT and BT projects.
The ministries were also requested to develop a policy formaintenance and repair expenses to ensure economic efficiency and to improvemanagement, inspection and supervision of projects.
The HCM City People’s Council was told to approve investmentpolicies for BOT projects before issuing investment registration certificatesso that returns on investment could be ensured.
The city People’s Committee was urged to direct the Department ofConstruction to compile statistics on projects funded with State capital in thecity.
Speaking at a recent meeting in HCM City, Vo Van Hoan, headof the People’s Committee Office, said the city had faced numerous challengesin developing infrastructure projects since the early 2000s, especially ashortage of funds.
He said that many road infrastructure projects in the cityrequired huge amounts of capital but the city’s budget was overstretched, whilebudget allocations by the central Government were insignificant.
To deal with the capital shortage, the city has sought strongerprivate sector engagement by developing infrastructure projects under the BOTor BT investment models.
From 2010 to 2015, HCM City signed contracts with eight investorsto develop 13 road and environmental protection projects under the BOT or BTmodel with total investment of nearly 33 trillion VND (1.45 billion USD).
Five of them have been completed, while the remaining eightprojects are still under construction.
The Government Inspectorate said that many of the projects nowunderway are moving at an extremely slow pace, leading to losses and costoverruns.-VNA
VNA
