On April 8, according to Lao Dong's source, Dong Dang - Tra Linh Expressway Joint Stock Company has just sent a document to Cao Bang Provincial People's Committee and relevant agencies, proposing solutions to stabilize prices, control speculation and ensure fuel supply for construction.
According to businesses, the slow adjustment of unit prices according to market fluctuations poses a risk of legal disputes in public-private partnership (PPP) contracts, and directly affects the progress, settlement and audit of projects.
The Dong Dang - Tra Linh expressway project was started in January 2024, with a length of 121km, a total investment of about 26,000 billion VND, implemented in PPP mode and divided into two phases.
According to the plan, by May 19, the 62km long section from Dong Dang border gate (Lang Son) to Dong Khe commune (Cao Bang) will be technically opened to traffic; the remaining sections are expected to be opened to traffic on the roadbed.
Currently, at the construction site, the project enterprise and contractors have mobilized more than 1,400 equipment and nearly 3,000 engineers and workers, organizing construction on more than 200 fronts. The realized value reached about 8,000/11,470 billion VND, equivalent to 70% of the contract volume.
However, from the beginning of March to now, fuel and construction material prices in the Lang Son and Cao Bang areas have increased sharply, about 132% compared to the end of January. Notably, the price of DO oil - the main fuel for machinery - increased from 17,629 VND/liter to 44,788 VND/liter, excluding transportation costs.
Meanwhile, the fuel consumption demand of equipment on the construction site is up to about 150,000 liters per day. The supply is unstable as many units do not supply in a form suitable for construction conditions.
Prolonged price fluctuations have caused many construction teams to temporarily stop or operate at a reduced capacity. Contractors cannot work overtime, expand construction scope or maximize equipment capacity, greatly affecting the ability to complete the progress as directed by the Government.
Faced with this situation, the project enterprise proposed that the People's Committee of Cao Bang province propose to the Government to direct ministries, branches and Vietnam National Petroleum Group to implement price stabilization measures to ensure fuel supply.
At the same time, localities need to soon update and announce prices of materials, labor, freight rates and construction price indexes close to the actual market.
Another proposed solution is to allow direct offsetting of the difference in fuel, material and construction machinery costs compared to the original contract, thereby updating it to the total investment level as a basis for payment and settlement.
On the local side, leaders of the Cao Bang Provincial Traffic Construction Investment Project Management Board (PMB) affirmed that they will accompany and not let investors be "lonely" at the construction site.
Solutions to adjust construction organization, save fuel, optimize equipment operation and strengthen cost management are being implemented to adapt to market fluctuations.
Unit prices are the most worrying issue, but the law allows adjustment, so Cao Bang's consistent viewpoint is to always accompany project businesses and investors, flexibly implement solutions to ensure the project takes place as planned," Mr. Hoang Duc Tho - Director of the Project Management Board shared.
According to Mr. Tho, in the coming time, the forecast of fuel prices will still have many fluctuations. Therefore, the requirement is to continue to promote the spirit of proactiveness and flexibility; promptly remove difficulties and obstacles; improve mechanisms and policies to ensure harmony of interests between the State, investors and businesses.
Previously, Cao Bang Provincial People's Committee directed Petrolimex Cao Bang Co., Ltd. to prioritize ensuring gasoline and oil supply for the project, contributing to removing difficulties in the construction process.
