Gia Lai Province has withdrawn from a Finland-funded phase of the Pleiku urban drainage and wastewater treatment project, citing conflicts between the donor’s conditions and Vietnam’s procurement and investment laws. The province formally notified relevant ministries and will restructure the project as a domestically financed program for 2026–2030.
The original 2023–2026 plan totaled about 41.2 million$, combining Finnish official development assistance, loans, and provincial funds. It aimed to install a drainage pipeline system, 13 pumping stations, and a wastewater treatment plant with a capacity of 20,000 m³ per day serving the Hoi Phu basin and nearby areas in Pleiku.
Officials said implementation stalled over conditions requiring a Finnish main contractor, a set share of equipment and materials from Finland, approval by Finland’s export credit agency, and loan finalization only after contracting with a Finnish firm—terms deemed incompatible with Vietnamese law.
Financial terms also added costs, including a 6.85% credit guarantee fee, a 1.5% arrangement fee, and a 0.25% management charge, totaling about 1.6 million$. Gia Lai concluded domestic financing would be more feasible and cost-effective and will proceed with a two-phase, fully local investment structure.
Source: news.tuoitre.vn
