BOT contract for road project in HCM City proposed to be terminated

27-Jan-2021 Intellasia | The Saigon Times | 7:22 AM Print This Post

The HCM City Department of Transport has proposed the municipal government end a contract to execute a road project linking Vo Van Kiet Avenue and the HCM City-Trung Luong Expressway, under the build-transfer-operate (BOT) format, with the Yen Khanh Trade Production and Service Company, as the project has been executed for five years but still remains incomplete.

Work on the project started on October 25, 2015, but it is now only 12 percent complete.

Although the department has repeatedly asked the Yen Khanh Company to resume work on the project, the firm has failed to act. In addition, the firm was involved in a court case at the HCM City-Trung Luong Expressway, causing losses and wastefulness.

Therefore, the department suggested that the municipal government direct the Department of Justice to consult with the departments of Finance and Planning-Investment to propose solutions.

The 2.7-kilometer road project required an estimated investment of nearly VND1.6 trillion and was expected to be completed in 2017.

Once completed, the road was expected to shorten the travel time from the city’s downtown area to the HCM City-Trung Luong Expressway, ease traffic on National Highway 1A and reduce traffic congestion in the southwestern gateway area of the city, including Binh Tan and Binh Chanh districts.

https://english.thesaigontimes.vn/80328/bot-contract-for-road-project-in-hcmc-proposed-to-be-terminated.html

 

Category: Business, Vietnam

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