Delays add 100m USD to sanitation project costs

HCM City (VNA) - A major sanitation project in Ho Chi Minh City may require an additional 100 million USD after delays have caused cost overruns, its managers have said.

At a meeting with the National Assembly's Finance and Budget Committee
on August 25, the management board of the HCM City Environmental Sanitation
Project said the budget may be "adjusted" again. It was increased once
already from 200 million USD to 251 million USD in March 2008.

The project, which kicked off in September 2003, was scheduled for
completion in late 2007.

It is aimed at sustainable improvement in public health and well-being
through reduction in pollution by waste-water and flooding.

Sai Gon Tiep Thi (Marketing) newspaper reported that packages for
construction of the drainage are being executed at a snail's pace.

Work on Package No.7 was scheduled to be completed in November 2006. But,
as of August 25 this year, only 66 percent of the work was finished.

Only 19 percent of work on other packages to replace and extend sewers to
reduce storm water runoff has been completed so far.

The project's deadline has been extended to 31 December 2009.

But the management board said much of the work remains incomplete and
would not be complete in time.

The HCM City Environmental Sanitation Project involves work on 3,046
hectares in districts 1,3,4,5,6,8,10,11, Tan Binh, Binh Thanh and Binh
Chanh. It is funded by a 40-year concessional loan of 166 million USD from
the WorkBank.-Enditem