Series of violations during 10 years of building the Huu Nghi - Chi Lang expressway

Duy Dũng |

After 3 times of converting investment forms, the Huu Nghi - Chi Lang expressway has just started construction and installation, accompanied by a series of accompanying violations.

Project changes policy 3 times

After nearly 10 years of implementation, the Huu Nghi - Chi Lang border gate expressway project (Lang Son province) has not yet been completed as planned. Not only that, this project has also fallen into a deadlock many times.

In December 2025, the Government Inspectorate issued Inspection Conclusion No. 386/KL-TTCP (KLTT) on the compliance with policies and laws at this border expressway project.

The content of the inspection conclusion shows that the project was approved for the first investment policy in 2016, through 3 conversions of investment forms, the total capital was from 8,743.15 billion VND and then increased to 11,024.7 billion VND.

Hinh hai hoan chinh tuyen cao toc Huu Nghi - Chi Lang dan hien huu. Anh: Ngoc Quy
The complete shape of the Huu Nghi - Chi Lang expressway gradually appears. Photo: Ngoc Quy

In 2016, the project was set a target to be completed in the period 2016 - 2019, but due to many reasons, this project will not be implemented for the entire route until 2024.

The total investment for the 3rd time is adjusted to 11,024.7 billion VND, of which state budget capital accounts for nearly 50%, the rest is arranged by investors; expected to be completed in 2026.

After that, based on the amended PPP Law and the specifics of difficult areas, the project was adjusted according to the mechanism of 70% state capital - 30% investor capital, increasing the budget capital to about 8,200 billion VND.

Du an nay tung bi 2 ong lon ngan hang la ADB va Vietinbank tu choi cap von. Anh: Ngoc Quy
This project was once refused capital by 2 major banks, ADB and Vietinbank. Photo: Ngoc Quy

Clearly state the series of violations

The content of the KLTT clearly points out a series of violations at this project. Accordingly, in the period 2016 - 2018, the project builds a form of public investment. The Ministry of Transport approved the project, assigning Vietnam Expressway Corporation (VEC) to be the investor. The project was implemented from 2016, while the validity of the ADB loan expired on December 31, 2016 (payment deadline is March 31, 2017).

However, since the transfer of competent state agencies from the Ministry of Transport to Lang Son Provincial People's Committee (in 2018) to date, the Ministry of Construction (formerly the Ministry of Transport), Lang Son Provincial People's Committee, VEC and related units have not reviewed and specifically identified survey and design dossiers that have been utilized or not utilized; have not determined unit prices, value of implemented costs and have not approved the final settlement of these expenses.

In the period 2018 - 2022, the project was converted to BOT form. After the Prime Minister approved the addition of the Huu Nghi - Chi Lang section to the Bac Giang - Lang Son City expressway project and transferred the competent state agency to the Lang Son Provincial People's Committee, the locality did not fully implement the procedures for converting from public investment to PPP as prescribed.

Mot doan tuyen tren cao toc Huu Nghi - Chi Lang. Anh: Khanh Linh
A section of the Huu Nghi - Chi Lang expressway. Photo: Khanh Linh

Lang Son Provincial People's Committee issued Decision No. 904/QD-UBND dated May 17, 2018 when it had not been handed over by the Ministry of Transport. The Provincial Project Management Board did not hand over the survey and design documents carried out by VEC to the BOT investor; VEC and Project Management Board 2 did not hand over the site, causing the Provincial People's Committee to have no basis to hand over to the investor.

TP2 project enterprises when signing contract appendices did not meet the minimum owner's equity requirements; did not carry out bomb and mine clearance but still organized construction. The Provincial PMB and TP2 PMB have not statistically determined the volume and work completed and have not yet settled costs.

In the period 2022 - 2025, the project was implemented independently in the form of PPP. The work of preparing, appraising, and approving design documents and estimates was slow, with many errors; the construction progress of bidding packages was slow compared to the contract, in some cases construction was not approved for design. The construction of the ECO4 Bidding Package when there was a request to expand it to 4 lanes led to the demolition of the completed items, causing waste of more than 3.16 billion VND.

The project still has about 1.5 million m3 of land and waste rocks that have not been arranged for landfills; the contractor has not completed mineral exploitation procedures, has not fulfilled environmental protection fee obligations. Competent state agencies have not allocated land to project enterprises, and have not determined the amount to be paid for rice land area.

The Provincial Project Management Board has also not fully handed over dossiers, documents, the site and the volume constructed before 2018 to the project enterprise when implementing PPP.

Notably, TPBank did not properly implement its capital allocation commitments, seriously affecting the project progress. Investors and project enterprises could not arrange loans and other capital sources under BOT contracts.

In that context, Lang Son Provincial People's Committee submitted and the Provincial People's Council issued a resolution adjusting the increase in the local budget capital participating in the project when the capital source has not been balanced according to regulations; and at the same time proposed that the Central Government support 2,700 billion VND outside the public investment plan.

By the time of inspection, the province had not issued a decision to adjust the investment project, and the Ministry of Finance had put the project on the list of projects facing difficulties and obstacles.

KLTT determined that responsibility for the above-mentioned violations and shortcomings belongs to the Ministry of Construction, People's Council and People's Committee of Lang Son province, relevant departments and agencies, VEC, project management boards, investors, project enterprises, capital-funding banks and contractors participating in the project.

Du an cao toc Huu Nghi - Chi Lang dang tiep tuc xay dung sau 3 lan doi nha dau tu. Anh: Khanh Linh
The Huu Nghi - Chi Lang expressway project is continuing construction after 3 investor changes. Photo: Khanh Linh

Proposing handling options

From Inspection Conclusion No. 386/KL-TTCP, the Government Inspectorate proposed that the Prime Minister direct the handling of a number of contents related to the Huu Nghi - Chi Lang border gate expressway project.

The State Bank of Vietnam is requested to consider the responsibility of TPBank for not arranging and disbursing capital as committed and not implementing the Prime Minister's direction; and at the same time study and issue sanctions against credit institutions that commit to allocating capital but do not implement it after the project wins the bid.

The Ministry of Construction shall preside over and coordinate with the People's Committee of Lang Son province and VEC to urgently finalize the implemented costs; review and handle the responsibilities of collectives and individuals for shortcomings and violations in the project implementation process.

The People's Committee of Lang Son province is requested to review the submission, appraisal, and approval of Resolution No. 18/NQ-HDND, clarify the capital balance capacity; coordinate cost settlement with the Ministry of Construction and VEC; direct the review of the volume implemented by the project enterprise for settlement and finalization, avoiding disputes; and at the same time handle the responsibilities of violating units and individuals.

The Government Inspectorate also requested Lang Son province to soon complete land allocation to project enterprises; accelerate progress, review bidding packages, overcome violations; request project enterprises to fully implement contract obligations, adjust estimates according to inspection conclusions and implement acceptance and settlement in accordance with regulations.

In case of detecting budget losses or signs of criminal violations, the dossier will be transferred to the investigating agency according to regulations.

Duy Dũng
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