Hydropower investor terminates contract with Chinese contractors

Vinh Son – Song Hinh Hydropower Company has terminated contracts with two Chinese contractors at Thuong Kon Tum Hydropower Plant project for slow and discontinued construction in the Central Highlands province of Kon Tum.

The project’s two most important items are water-intake tunnel and the plant which have been undertaken by Chinese hydropower group and the country’s railways department since 2011.
Over 300 Chinese workers were present on the plant’s construction site in peak time. However most of them have been taken home by the contractors.

Since July, only few Chinese managers have been there. All machines and equipment have been dismounted and gathered in front of the tunnel.

The project investor, Vinh Son – Song Hinh Hydropower Company (VSH), said that execution units have dug five out of 20 kilometers of the tunnel by mid August.

Instead of speeding up the progress, the Chinese contractors required VSH to supply VND800 billion (US$38 million) with aiming to make up costs from underground water leaking and price escalation.

The tunnel progress is two year behind schedule in the contracts causing a loss of VND1-1.2 trillion per year for the two turbine plant, according to VSH.

Breaking ground in 2009, the 220MW Thuong Kon Tum hydropower project is the largest one in Kon Tum Province on Se San River. Total capital for the plant's construction is estimated at VND5,744 billion.

By Duc Trung – Translated by Hai Mien

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