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Investor explains stagnation of antiflood project
The Saigon Times Daily
Friday,  Sep 14, 2018,18:15 (GMT+7)

Investor explains stagnation of antiflood project

The Saigon Times Daily

Trung Nam General Director Nguyen Tam Tien speaks at a press conference on September 13 - PHOTO: VNA

HCMC – Trung Nam Group, the investor of the VND10-trillion project aimed at improving flood control in HCMC, explained the reasons behind its decision to put the project on hold, reported the local media.

Speaking at a press conference, Trung Nam General Director Nguyen Tam Tien said the suspension of the project had resulted from the city government’s delay in confirming the final workload of the project, which caused the Saigon branch of Bank for Investment and Development of Vietnam to suspend loan disbursement for the project.

Tien put the blame on the consortium of construction supervision consultants for the project, saying their unreasonable assessments led the city government to approve the done workload, thus forcing the lender to suspend new loan disbursement.

At least 72% of the project work has been completed, with total expenditure of VND5,690 billion, according to Tien. After three months of the project’s suspension, the consortium reported expenditure of VND3.503 trillion and equity of VND803 billion. Therefore, as much as VND1.4 trillion has yet to be disbursed, causing the group to suffer losses of VND17-20 billion per month.

Responding to the construction supervision consultants' allegation against the group for having replaced S355 steel from the Group of Seven (G7) countries with Chinese steel SUS 323L, Tien stated that work on the project was carried out in accordance with the design. The consultants refused to confirm the payment as the steel standard did not meet the technical guidelines on steel standards, as regulated by the HCMC government, he added.

According to the developer, the designer of the project initially drew up a technical instruction showing that the construction material used was S355 steel from G7. However, the Construction Law stipulates that designers of State-funded projects cannot dictate what construction materials or equipment should be used.

Tien said the designer had already adjusted the design by removing details about types of steel.

The consortium of construction supervision consultants had intentionally ignored this fact and provided incorrect information for the city government, he noted.

He complained that the consortium had yet to confirm the disbursement for work to resume on the Muong Chuoi and Phu Dinh sluice gates, despite the group’s compliance with using black steel or Chinese steel for construction as approved.

The volume of Chinese steel used for the Muong Chuoi floodgate was 1,100 tons, while the Phu Dinh floodgate was constructed with 130 tons of Chinese steel. The use of Chinese steel will help the city save up to VND90 billion, Tien said, adding that this type of steel still meets the requirements on construction quality and ensures safety.

Moreover, the build-transfer contract signed by the HCMC government and the investor excludes the requirement that G7, European and Japanese steel must exclusively be used for floodgates, Tien noted, stressing that types of steel that meet technical standards can be used to build floodgates. The representative rejected the allegation of replacing G7 steel with Chinese steel.

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