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Ho Chi Minh City
Friday, October 7, 2022

HCMC seeks to end pump rental contract

By Minh Hoang

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HCMC – The HCMC Department of Construction has written to the municipal government proposing entering negotiations to end a contract to rent a massive pumping system for Nguyen Huu Canh Street in Binh Thanh District.

Nguyen Huu Canh Street no longer faces floods as a road upgrade has allowed rainwater to be drained into the Nhieu Loc-Thi Nghe canal rather than into the pump system operated by the Quang Trung Industry Group since the start of April, the municipal department stated.

A project to upgrade the street was completed in April last year and the road did not witness inundation despite the rainy season in 2021.

The city signed the pump rental contract to control flood tides on Nguyen Huu Canh Street in April 2018. The contract, worth VND14 billion a year, is valid for seven years, from 2017 to the end of 2023.

If the city unilaterally terminates the contract, apart from paying compensation, the city will be fined 8% of the contract value, the department cited Article 14.3 on the breach of contract terms.

As such, the department proposed that the municipal government assign the Infrastructure Management Center, which acted as the city’s representative to sign the contract, to negotiate with Quang Trung Group for the termination.

Earlier, the center under the HCMC Department of Construction asked the firm to suspend the pump system so that it could assess the necessity of the pumping system after the road was upgraded.

Aside from this, HCMC Chairman Phan Van Mai also tasked the municipal department with coming up with solutions to handle the pumping system on the street in April to avoid wastefulness and save State budget.

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