Lang Son asks for additional investment money for Huu Nghi - Chi Lang Expressway

The expressway under construction is "cut off capital"

The Huu Nghi - Chi Lang Expressway is nearly 60km long, with a total investment of more than VND 11,000 billion, of which the State capital is about VND 5,500 billion, the rest is arranged by investors.

The project passes through Chi Lang, Cao Loc, Van Lang districts and Lang Son city, expected to complete the connection between Bac Giang - Lang Son and Dong Dang - Tra Linh, promoting the border economy.

Started in April 2024, the project has cleared more than 84% of the site, constructed about 50km and completed most of the design.

However, when adjusting the scale of the Tan Thanh - Coc Nam section from 2 to 4 lanes, the project encountered great difficulties in both legality and finance.

In the document sent to the Government, Lang Son province stated that according to Law No. 57/2024/QH15 (effective from January 15, 2025), PPP projects in disadvantaged areas can increase the State capital ratio to a maximum of 70%.

However, because the project was approved and constructed before the law took effect, it is not subject to transition provisions. The adjustment dossier currently lacks sufficient legal basis to submit to the Provincial People's Council.

Regarding finance, Lang Son province said it is no longer able to allocate an additional VND 2,700 billion to increase the State capital ratio. The province has allocated 1,500 billion VND for the project in the 2021-2025 period, but in 2024, there was a shortfall of 256 billion VND in land revenue and it is forecasted that 2025 will continue to be difficult.

The investor - Deo Ca consortium and its member units - also faced difficulties when the bank only approved a loan of VND 2,300 billion out of the total initial commitment of VND 4,423 billion. The initial financial plan was broken.

The People's Committee of Lang Son province proposed that the Government clarify the legal basis for applying a rate of 70% of State capital or adding transitional provisions, and at the same time propose the Central Government to support an additional VND 2,700 billion from the budget to continue adjusting and expanding the route from phase 1.

slow construction due to lack of land

Although the project is expected to be the "final link" in the expressway axis connecting Hanoi - Lang Son, the construction progress has only reached 11.66% of the contract value.

According to the report, although from March 2025, contractors have increased 239 personnel, 226 equipment and added 5 construction teams, the "sticky rice and bean" site situation has seriously affected the implementation.

Of the 497 households that had to be relocated, only 81 households have handed over the land. Hundreds of technical infrastructure works such as electric poles, telecommunications lines, and railway signals have not been handled.

Mr. Vu Xuan Huy - Director of the Executive Board of DCT 559 Investment Joint Stock Company - said: "We have mobilized more than 140 motorbikes, 400 engineers and workers. However, the lack of synchronous land makes it very difficult to organize construction".

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