Must submit to the Prime Minister to adjust the project whose funding was canceled by the WB in Khanh Hoa

On the afternoon of April 25, at the press conference of the People’s Committee of Khanh Hoa province, the leader of the Provincial Development Project Management Board informed that the Ministry of Planning and Investment had just instructed the province on adjusting the investment policy of the Environmental Project. Coastal Cities Sustainable School (CCSEP) – Nha Trang Subproject (CCSEP Nha Trang).

Canceled for non-compliance with the resettlement policy framework

The CCSEP Nha Trang project was decided by the Prime Minister to approve the investment policy in April 2016 (adjusted in October 2017), with a total investment of 72 million USD (equivalent to 1,746 billion VND).

In particular, there are 2 sub-project components including bidding packages for construction of embankment investment items, the southern shore of Cai River and the northern embankment of Cai River and Chu Dong Tu street (in Thap Ba Ponagar area, Nha Trang).

According to the leader of the Khanh Hoa Provincial Development Project Management Board – the investor of the above project, the total construction investment cost of items under component 2 that the WB has canceled implementation capital for is about more than 10 million USD. (equivalent to more than 250 billion VND).

The reason why the WB canceled funding for the investment capital of component 2 is because the locality implementing the project in Nha Trang City “did not comply with the project’s resettlement policy framework and the subproject’s resettlement action plan.” CCSEP Nha Trang” in the funding agreements that the Government of Vietnam has signed with the WB.

The WB has checked and discovered that 50/60 cases of households affected by WB-funded projects in component 2 have handed over land but have received compensation lower than the levels prescribed by the WB in the “main framework”. resettlement book” mentioned above.

After the World Bank canceled investment capital funding (more than 10 million USD), Khanh Hoa province requested to adjust the CCSEP Nha Trang project to invest with the province’s budget capital to continue implementing the construction of various categories. construction items in component 2 of the project.

According to the Ministry of Planning and Investment, the CCSEP Nha Trang project belongs to group A. Khanh Hoa Provincial People’s Committee has proposed adjusting two contents of capital structure (reducing WB loan capital, increasing counterpart capital from the local budget) and extend project implementation time.

Therefore, according to the provisions of relevant decrees of the Government, “adjustment of project investment policies falls under the authority of the Prime Minister”.

Therefore, the Ministry of Planning and Investment has requested the People’s Committee of Khanh Hoa province to carry out procedures to submit to the Prime Minister to adjust the investment policy of the CCSEP Nha Trang project according to the specific regulations and decrees mentioned above.

Still compensating people according to the WB’s policy framework

According to the leader of the Khanh Hoa Provincial Development Project Management Board, the proposal to continue investing in the remaining part of component 2 of the CCSEP Nha Trang project with the province’s budget capital is implemented in accordance with the policy of the Standing Committee. Khanh Hoa Provincial Party Committee approved.

Currently, the project investor has compiled documents and sent them to the Department of Planning and Investment to present to the appraisal council. After that, it will be submitted to the Provincial People’s Council for consideration and approval, then the province will submit it to the Ministry of Planning and Investment for consideration and submit to the Prime Minister on adjusting the policy of the CCSEP Nha Trang project.

If approved by the Prime Minister, when reinvesting to implement the remaining parts in component 2 of the CCSEP Nha Trang project with provincial budget capital, still according to the policy of the Provincial Party Standing Committee, compensation will be paid. , support for people affected by the CCSEP Nha Trang project in component 2 continues to apply in accordance with the WB’s policy framework on resettlement of the project and the “resettlement action plan of the subproject”. CCSEP Nha Trang project”.