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Thursday, July 25, 2024

HCMC to end Nguyen Huu Canh pump lease in May

By Minh Hoang

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HCMC – The HCMC government has approved the Construction Department’s proposal to end a contract to rent a huge pumping system for Nguyen Huu Canh Street in Binh Thanh District in May.

The city government on May 9 assigned the Infrastructure Management Center, which acted as the city’s representative to sign the contract, to negotiate with the pump lessor, the Quang Trung Industry Group, over the termination of the contract.

The Department of Construction will have to inform the HCMC government of the negotiation results.

The decision to end the pump lease came after Nguyen Huu Canh Street had been repaired and upgraded at a cost of over VND470 billion, making the road no longer prone to floods despite heavy rain or flood tide. The road was not inundated during the 2021 rainy season.

Since the start of April, rainwater has been drained into a new wastewater drainage system rather than into the pump system.

In late April, the department wrote to the HCMC government proposing ending the contract to avoid wastefulness.

The city signed the pump lease in April 2018, which costs VND14 billion a year and lasts seven years, from 2017 to 2023.

In line with Article 14.3 on the breach of the contract terms, the city will be fined 8% of the contract value, apart from paying compensation, if the city unilaterally terminates the contract.

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