Hue adjusts road construction project for 7 years but still not completed

PHÚC ĐẠT - NGUYỄN LUÂN |

After 7 years of delay, the Mai - Tan My market road project worth nearly 200 billion VND in Hue is still unfinished. The Hue City People's Committee has just decided to adjust the project, change the capital source and extend the implementation period to the end of 2025.

Slow progress

The Mai - Tan My market road project was approved by the Provincial People's Committee (now Hue City People's Committee) in 2016, with the starting point intersecting with National Highway 49 at Km10+217 on Pham Van Dong Street, the end point intersecting with Phu My - Thuan An Street with a total length of more than 4km, the cross-section of the route is complete according to the plan with a roadbed of 36m.

DA's goal is to invest in the construction of the road according to the plan, contributing to creating motivation to accelerate the implementation of the planning of Thuan An ward, meeting the transportation needs of the area.

The project has a total investment of nearly 195 billion VND, including more than 123 billion VND for construction and more than 33 billion VND for site clearance, using the central budget to support the Socio-Economic Development Target Program for regions.

Construction started in August 2018 with a plan to complete after 3 years, but the project was continuously delayed due to violating the contractor's schedule. From 2023 to now, the project has stopped construction. Recorded at the scene, many items were still unfinished, overgrown with weeds, and the sidewalk and median strip were covered.

According to the Management Board of Hue City Urban Construction Investment and Urban Development Project (PMU), Cho Mai - Tan My Street Project includes 22 bidding packages, of which the consulting packages have been completed. There are currently 3 construction and installation packages, including packages 11, 14 and 19. Package No. 11 is implemented by Dong Tam Construction Co., Ltd., including the construction on the 2.2km long route, with a contract value of more than VND 58 billion. By 31.12.2023 disbursed 52.8 billion dong (reaching 92.48%), the basic project was completed, and nearly 4.3 billion dong has not been paid. Package No. 14 was implemented by Thien Phat Thinh - Minh Dat Joint Venture, worth more than 65 billion dong, the construction of the route is longer than 2km. Currently, it has completed the items of roads, boxes, sewers ... slow progress due to subjective faults of contractors and geological and weather conditions.

Package No. 19 implemented by the joint venture of 68 - Viet Anh Company, worth more than 29 billion VND, has disbursed 25.6 billion VND, reaching over 90% of the construction value.

Expected to be completed by the end of 2025

The project is allocated about 173.6 billion VND in capital, of which nearly 27 billion VND was allocated in 2023 but only 8.4 billion VND was disbursed. In 2024, no capital was allocated, so the project had to temporarily suspend construction. In 2025, 10 billion VND was allocated but has not been disbursed yet. Accumulated disbursement to date has reached more than 173.6 billion VND.

Deputy Director of the Project Management Board said that the construction progress and disbursement in 2023 were affected by both objective and subjective reasons. Objectively, the project is located in low -lying areas, incomplete drainage infrastructure, so it is often flooded due to heavy rain at the end of 2023. Weak geology, need to wait for subsidence and perform control monitoring, extending construction time. Regarding subjective, the contractor package 14 violates schedule, affecting chains on other bidding packages. The project management board has sanctioned related contractors.

The PMU of information, based on Clause 2, Article 37 of the Law on Public Investment in 2024, the adjustment of this leather investment is not required to adjust the investment policy. Therefore, the investor has recently sent a report to the Department of Finance for consideration and appraisal, advising and submitting to the City People's Committee for approval of adjusting the skin of Mai - Tan My street and has been approved by Hue City People's Committee and issued a decision to adjust the project (Decision No. 941).

The proposal content includes changing the capital structure but does not change the total project investment. The central budget decreased from VND 190 billion to more than VND 171 billion due to capital canceled in 2023, the rest was guaranteed by the city budget. The project management board also proposed to extend the implementation time until December 31, 2025.

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