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Super-large pump rent set at VND9.9b per year
The Saigon Times Daily
Wednesday,  Oct 3, 2018,14:07 (GMT+7)

Super-large pump rent set at VND9.9b per year

The Saigon Times Daily

The super-large water pump has been installed on the flood-prone Nguyen Huu Canh Street in downtown HCMC – PHOTO: THANH HOA

HCMC – The head of the HCMC People's Committee Office, Vo Van Hoan, has announced that the HCMC government has set the final rent for the super-large water pump to be used for fighting floods on Nguyen Huu Canh Street, Binh Thanh District, at VND9.9 billion per year, reported Nguoi Lao Dong newspaper.

The new rent is much lower than the VND24 billion per year fee previously demanded by the owner, Quang Trung Industry JSC.

Hoan noted that the government and the owner have yet to reach a consensus on the rent. If both parties fail to settle on a price for the pump, the municipal government will assume responsibility for paying the owner of the pump an advance based on the fee determined by the city. Hoan added that negotiations over the rent will have to be concluded by end-October.

The Steering Center of the HCMC Urban Flood Control Program had earlier proposed a rent of VND9.9 billion per year for seven years, with a total cost of VND70 billion.

Nguyen Tang Cuong, general director of Quang Trung Industry JSC, however, rejected the suggested price as it was not enough to recover the company’s investment in the pump and the cost of operating it over the long term.

Cuong explained that it had taken the company seven years to research the antiflooding water-pumping system. The company spent over VND100 billion on designing, manufacturing, installing and operating the pump and on training workers.

Since then, the pump has been deployed 31 times and has only failed twice when blocked by large pieces of garbage.

The owner has stopped the operation of the pump while awaiting fresh capital since early September, some five months after the signing of the in-principle contract, as the negotiations over the rent have yet to be concluded.

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