HCMC – The HCMC People’s Committee has officially terminated the build-operate-transfer (BOT) contract for a road that connects Vo Van Kiet Boulevard and the HCMC-Trung Luong Expressway.
The decision was communicated to Yen Khanh Group, the project investor, and the HCMC-Trung Luong BOT Investment Company. The project, initiated in 2015, was designed to cover 2.7 kilometers with an estimated investment of nearly VND1.56 trillion, excluding land clearance costs. Originally scheduled for completion in 2017, the project has only achieved 12% progress and has been stalled for years.
The investor and project enterprise were found to have failed in providing essential documentation, including proof of equity capital and loan agreements. A deadline to address these deficiencies expired in July 2020.
Fortune Vietnam Joint Stock Commercial Bank, the project’s sole lender, ceased funding due to violations of credit agreements and prolonged construction delays. These delays disrupted financial plans and repayment schedules, further complicating the project. Additionally, the project enterprise failed to submit required documentation for the completed work, according to local media reports.
The HCMC People’s Committee stated that it has no grounds to process payments for the unfinished project and considers the investor to have forfeited any legal claims related to the terminated contract.
