Work started on the project in June 2016, aiming to manage high tide flooding and respond to climate change effects over an area by the Saigon River spanning 570 square kilometers and home to 6.5 million people.
Invested under the build-transfer model, the VND10 trillion ($426 million) project runs through districts 1, 4, 7, 8, Nha Be and Binh Chanh with six tidal sluice gates. It also has several dykes spanning 7.8km along the river.
Originally set for completion within three years, the project was briefly stopped in April 2018 due to a lack of capital and then delayed again starting November 2020 because the city administration had not signed a contract extension.
The contract signed with the project's builder, city-based Trung Nam BT 1547 Co. Ltd, expired in June 2020.
Since the contract was not extended, the bank refused to disburse the remaining sum of VND1.8 trillion ($77.6 million) for Trung Nam to continue the project.
Workers install sewers at Muong Chuoi Canal in Nha Be District on April 21, 2023.
In April 2021, the then Prime Minister Nguyen Xuan Phuc ordered HCMC to work with the central bank and BIDV to provide funds for the project. Work on the project was eventually resumed in November that year. However, it has been carried out at a snail's pace.
Ut Ngon, a local in Phu Xuan Commune of Nha Be District, often takes his grandson to play near the construction site of the drainage gate on Muong Chuoi Canal. The gate is now 95% complete.
He said 40 families had been relocated to serve the project.
"This area is frequently flooded and we all hope for the project to be completed soon," he said.
Locals on Tran Xuan Soan Street in District 7 stand near the construction site of Tan Thuan sluice gate.
"They said the project will be completed within three years and now it's been seven but nothing has changed. Floodwater still flows into our house whenever the tide rises," said Nguyen Hoang Phung, 54.
The tidal sluice gate on Doi Canal in District 8.
The gate is 90% complete but work has yet to be resumed.
The construction site has occupied more than half of Phu Dinh Street of District 8 for several years.
The gate is now 97% complete but work has been stalled and some people have even used the area to keep chickens.
The government issued a resolution in 2021 holding HCMC authorities responsible for the completion of the project, as well as to cut down on "irrational" expenses to ensure completion.
However, despite government efforts, the project remains stuck due to problems with the build-transfer contract that stop the bank from extending funding.
The prolonged delay has driven up costs, including interest on loans, and personnel and machinery fees to the tune of over VND600 billion.
Inspecting the project on March 11, the city's Deputy Chairman Bui Xuan Cuong said the biggest problem for the project now was funding.
He promised to direct related units to come up with solutions to resume work as soon as possible.
