ADB warns of fund withdrawal from Vietnam's $48.77mn infrastructure project over delays

The Asian Development Bank (ADB) has issued a formal warning to Vietnam's Quang Tri Province about the possibility of withdrawing its pledged official development assistance funding for a US$48.77-million infrastructure project if the province fails to meet the September 30 deadline.

The Basic Infrastructure for Inclusive Growth (BIIG2) project spans four central Vietnamese provinces -- Nghe An, Ha Tinh, Quang Binh, Quang Tri -- with several subprojects in Quang Tri currently facing significant challenges in contractor selection and execution.

According to a letter from ADB dated March 17, five contract packages are at risk of missing the loan agreement deadline of September 30, 2025.

The ADB confirmed that it would not reimburse any costs incurred after that date.

The packages include key transportation and agriculture subprojects deemed essential for socio-economic development in relatively impoverished Quang Tri Province.

These critical components include Hung Vuong Road connecting the East-West Economic Corridor to the Quang Tri Southeast Economic Zone; a road linking Cua Viet Port with eastern communes in Trieu Phong and Hai Lang Districts; and an intercommunal road in Huong Hoa District.

Under current agreements with the ADB and directives from the Vietnamese government, the Quang Tri People's Committee will be responsible for funding any unfinished works if deadlines are missed.

In respone, the provincial administration said on Friday that it had issued urgent directives to expedite the subprojects, holding the province's project management board fully accountable for progress.

The board is set to break ground on the five packages in April or May, with a projected construction timeline of 4-5.5 months.

Nguyen Thanh Binh, head of the project management authority, said that construction is heavily affected by weather, site clearance, and material supply.

Nonetheless, the board is committed to meeting the September 30 deadline if conditions permit.

Relevant agencies have been ordered to resolve land clearance issues -- especially on the Hung Vuong Road section -- and assess required counterpart funding to secure central budget support.

The Department of Construction and the Department of Agriculture and Environment have also been instructed to fast-track technical approvals and shorten administrative timelines.

Meanwhile, contractors have been urged to mobilize resources for immediate execution.

Commenting on the issue, officials from Quang Tri's Department of Finance expressed serious concern over the tight remaining timeline, with much of the work yet to begin.

The BIIG2 project is highly anticipated by Quang Tri residents, who expressed hope that it would boost regional connectivity, tourism, and job creation, while improving living standards across the province.

Minh Duy - Hoang Tao / Tuoi Tre News

(2025/04/07-11:24)