Gov't proposes $143 mln funding increase for the projected Bien Hoa-Vung Tau Expressway

Authorized by the Prime Minister, Minister of Construction Tran Hong Minh has signed a government proposal submitted to the National Assembly, seeking adjustments to the investment policy for Phase 1 of the Bien Hoa - Vung Tau expressway project.

Under the proposal, the total investment capital for Phase 1 of the project is set to increase from VND17,837 trillion ($688 million) to VND21,551 trillion (over $831 million)—an additional VND3,700 trillion (nearly $143 million) compared to the previously approved plan.

Explaining the cost adjustment, Minister Minh highlighted two primary factors driving the increase: compensation, support, and resettlement expenses and construction costs.

According to recent assessments, the total compensation, support, and resettlement costs have risen to approximately VND9,856 trillion ($380 million), marking a VND3,227 trillion ($124.4 million) increase from the initial estimate. This adjustment stems from reassessments during the site clearance process, where authorities conducted more detailed measurements to accurately determine the extent of affected land areas.

Additionally, the adjustment reflects findings from detailed surveys conducted by investors in topography, geology, and hydrology, as well as consultations with infrastructure management agencies to ensure optimal design solutions.

Fluctuations in material, labor, and construction machinery costs—observed between the 2023 technical design approval process and the initial investment policy establishment—have also contributed to the higher construction expenses.