Monday,  Jul 6, 2020,07:17 (GMT+7) 0 0
Ministry proposes picking Song Da Corporation as expressway’s contractor despite its VND11t debt
The Saigon Times
Saturday,  Jun 6, 2020,13:30 (GMT+7)

Ministry proposes picking Song Da Corporation as expressway’s contractor despite its VND11t debt

The Saigon Times

The headquarters of the Song Da Corporation - PHOTO: SONGDA.VN

HCMC - The Ministry of Construction has proposed picking Song Da Corporation as the contractor for some sections of the North-South Expressway project despite the corporation being over VND11 trillion in debt.

The ministry justified this, saying Song Da Corporation was chosen because of its human resources, available equipment and experience in constructing large projects.

Meanwhile, the corporation has been struggling with financial difficulties in recent years.

As of late 2019, it incurred a debt of VND11,135 billion including VND5,302 billion in financial lease debt, according to the Ministry of Finance. The corporation’s debt to equity ratio was 2.8, approximating the financial risk level.

Song Da Corporation’s debt came from its subsidiaries and affiliates including Halong Cement Company (VND2.7 trillion), Viet Lao Power JSC (over VND800 billion), Nam Chien Hydropower Company (some VND700 billion), Xekaman 1 Power Company (some VND300 billion) and Xekaman 3 Power Company (VND560 billion).

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