HN orders punishing BT project violators

VietNamNet Bridge – Chairman of Ha Noi’s People’s Committee Nguyen Duc Chung has asked relevant departments and investors to plan out a response to the Government Inspectorate (GI)’s conclusion on wrongdoings of Build-Transfer (BT) projects.

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The flyover at Long Bien intersection in Ha Noi, one of seven violating projects. – Photo

The content must be submitted no later than August 15. The city’s leaders will submit the report to the GI and the Government Office.

Earlier in July, the GI released findings of egregious wrongdoings in the implementation of seven BT projects in Ha Noi.

The GI recommended holding Ha Noi authorities accountable for the faults and said that all BT projects were behind schedule and had entailed significant cost overruns.

The report added that contractors were “not sufficiently capable of mobilising capital” and also blamed a “failure to disburse budget in accordance with set schedule.”

Seven BT projects that caused massive loss are the construction of Yen So wastewater treatment plant, Le Van Luong Road extension, southern main road of Ha Tay, a street connecting Le Duc Tho and Xuan Phuong new urban area, a road surrounding Chu Van An memorial site and the Ha Noi–Hung Yen interprovincial road.

The municipal Department of Planning and Investment has asked relevant departments and districts to review and reevaluate the projects’ norms and prices.

Investor of Ha Noi-Hung Yen inter-provincial road running through Ha Noi was said to apply wrong unit price and norm and increase the total investment.

The municipal Department of Planning and Investment asked the city’s Financial Department and Gia Lam District’s People’s Committee to order Thanh Nam Company-the investor-to review the calculation of construction value norm.

Him Lam Joint Stock Company, the principal investor in the Long Bien intersection, was asked to recalculate steel girder transport cost.

Long Bien District’s land use centre was ordered to review relocation of the project’s infrastructure to clarify VND3 billion (US$130,400) that was asked to be cut by the GI.

Regarding Le Duc Tho-Xuan Phuong road, leaders of Nam Tu Liem District are required to invite auditors to re-assess applied prices.

Regarding the main southern road of Ha Tay, the State-owned Civil Engineering Construction Corporation No.5 (CIENCO5) was asked to “immediately” pay back VND1.428 trillion ($62.8 million) to the State budget. The investor was also asked to transparently open related information and documents.

Leaders of Ha Noi’s People’s Committee said that the GI conclusion was reached when the BT projects had not been finally accounted and audited. These projects are still being implemented.

The responsibility of the city’s authorities and investors is to withdraw experience, review and make proper and legal adjustments, they said.

The city leaders said that they will issue documents requiring solutions and punishments for each project.

Source: VNS

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