VietNamNet Bridge – It is unclear how many new administration centers will be built, but it is clear that the projects will gobble up multi-billions of dong.

Trillion-dong administrative center projects drawn up

The new administration center in Binh Duong province.

The new HCM City’s administration center will be set up in an 18,000 square meter plot of land surrounded by Dong Khoi, Le Thanh Ton, Pasteur and Ly Tu Trong Streets.

In an effort to speed up the project, the city’s authorities have pushed to remove some structures on the land, while preparing intensively to organize a building design contest.

The total sum of money to be poured into the project remains a secret. However, according to the investor, the HCM City House Management and Trade Company, the total capital will not be lower than trillions of dong.

Prior to that, Binh Duong provincial authorities spent VND1.4 trillion to build an administration center, where more than 60 agencies are located. The center comprises two 21-storey buildings on an area of 100,000 square meters.

The Ba Ria-Vung Tau provincial authorities have also spent more than VND1 trillion on its new administration center located in Ba Ria City.

The construction of the administration centers in Da Nang City and Lam Dong Province is nearly complete. Da Nang has accepted paying VND1.9 trillion to build a 167 meter-high building with 34 stories and two basements. This will be the place for 1,800 civil servants to work.

Lam Dong province expects a 12-story building on an area of 74,000 square meters, at a cost of VND1.014 trillion.

In mid-March, the Dong Nai provincial authorities convened a meeting to discuss the building of a new administrative and political center. According to the provincial construction department, the project would cost up to VND2.2 trillion.

The other provinces of Binh Thuan, Khanh Hoa and Binh Dinh all have also joined the “administration center race”. Chair of Khanh Hoa Province Nguyen Chien Thang has suggested a project worth VND5.5 trillion.

Where’ll the money come from?

Of the VND5.5 trillion to be spent on the new administrative center in Khanh Hoa, VND2 trillion would be sourced from the local budget, while the remaining VND3.5 trillion would come after selling the land plots where the agencies are located now.

A similar plan was drawn up by Da Nang. However, as of today, with the project nearly completed, most of the funding has been sourced from the city’s budget, as the offices still have not been sold.

The Lam Dong provincial authorities are considering selling or leasing 19 villas and 5 houses in Da Lat to raise money for construction of the new center.

It was expected that the sale would bring VND455 billion to the local budget. However, no buyer or tenant has shown their interest in the villas so far.

In principle, cities and provinces can issue local authorities’ bonds to raise capital. However, analysts said such plans may face public opposition because it would only add to an already heavy public debt burden.

TBKTSG