Transport Minister warns highway investor for contract breach

Minister of Transport Nguyen Van The yesterday issued the first warning on the investor of BOT project building Hoa Lac-Hoa Binh road and upgrading Xuan Mai-Hoa Binh stretch of Highway 6 for serious breach of contract.

The toll gate in Xuan Mai-Hoa Binh stretch, Highway 6 (Photo: VNA)

The toll gate in Xuan Mai-Hoa Binh stretch, Highway 6 (Photo: VNA)

The ministry will terminate the contract if the investor fails to complete the project before August 31, 2018, he said.
According to the ministry, upgrading the highway’s 30.36 kilometer stretch was done in April 2015 and toll collection started on October 20, the same year.
Still construction of 25.7 kilometer Hoa Lac-Hoa Binh road has run behind schedule for over a year after three extensions. That is because two out of the joint venture of three investors have not sufficiently paid equity, so Saigon Hanoi Commercial Joint Stock Bank has stopped disbursement for a long time.
Minister The required the investors to fully pay the remaining equity of VND89 billion (US$3.91 million).
The BOT project has the total investment capital of nearly VND3 trillion ($132 million), implemented by the joint venture of three companies namely Corporation 36, Hanoi Construction Joint Stock Company and Truong Loc Company.

By BICH QUYEN – Translated by Hai Mien

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