Two new requirements for companies to be selected as contractors in the transport ministry-run projects are guarantees from banks marking loans to the companies, and reports on expected profit from the projects.
Minister Dao Dinh Binh announced these requirements at a meeting late last week, saying the rules were aimed to improve the progress of major projects given the numerous delays and the increasing debts by contractors in the recent past.
Binh said that from now on, his ministry only takes consideration of companies already lent by banks when selecting contractors, and companies have to give estimates on profitability.
As for the ministry-administered corporations with delays in developing their projects, from this month, the ministry hoods back 30% of the amount of work that should have been allocated to the corporations. This work amount will be handed over to other contractors of the corporations in question are deemed unable to fulfil their assignments.
Project management units under the ministry have also been asked to report debts of companies under their supervision so that the ministry could discuss solutions include additional leaning together with tighter controls.