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Sunday, July 14, 2024

HCMC to terminate BOT contract for road project

By Nguyen Tan

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HCMC – The government of HCMC has announced it would unilaterally terminate a long-stalled build-operate-transfer (BOT) road project linking Vo Van Kiet Avenue and the HCMC-Trung Luong Expressway.

The announcement follows a recommendation by an inter-agency working team and consultations with relevant agencies.

Trung Luong-HCMC BOT Investment One Member Limited Company began work on the 2.7-kilometer road in 2015 and the road was scheduled for completion two years later. However, construction has been delayed since 2018.

According to the report from the inter-agency working group, the HCMC Department of Transport previously coordinated with relevant departments to guide the investor and project company to rectify violations in line with the signed BOT contract.

The investor and project company had been requested multiple times to report on the implementation status, legal matters, and documentation regarding the completed workload.

However, they repeatedly sought extensions, citing lost documentation and the failure of contractors to provide complete information for the preparation of required settlement dossiers.

In June 2021, the HCMC government announced to end the BOT contract but negotiations have produced no result.

The project required a total investment of VND1,557 billion. To date, only 12% of construction work has been completed.

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