3 PPP projects under the North-South Expressway Construction Project

On February 8, regarding the construction status of 3 North-South expressway component projects implemented under the public-private partnership (PPP) method, the Department of Construction Investment Management ( Ministry of Transport ) said that, up to now, the Nha Trang - Cam Lam section project has construction output reaching more than 64% of the contract value, meeting the schedule.

As for the Cam Lam – Vinh Hao project, the construction progress is still following the set plan. According to the report, up to now, the project construction output has reached 36.16% of the contract value, meeting the plan.

According to the Department of Construction Investment Management, the work that determines the project's progress is under the scope of Construction Investment Corporation 194 (Company 194), but the construction of this contractor is still slow, the excavation work of the roadbed of Package XL01 is still 0.9 million m3. Along with that is the work of filling the roadbed of Package XL02; items of Km 56 bridge, Km 60 bridge, Package XL03.

Previously, the Ministry of Transport had issued a document criticizing Project Management Board 85 and requested the investor to review the contractor's capacity, consider transferring the workload or consider terminating the contract with the contractor who did not meet the requirements. This unit was also required to be present at the site regularly to manage the project.

However, the construction of the Dien Chau - Bai Vot section of the North - South Expressway PPP project, as of early February 2023, the cumulative construction output only reached 25% of the contract value (3.98% behind the adjusted schedule).

The cause of the delay was determined to be due to some unresolved and prolonged problems. Typically: Vina 2 Investment and Construction Joint Stock Company has not paid enough equity capital, affecting the capital source and payment to contractors; has not re-established detailed progress in accordance with the overall progress, has not organized overtime to compensate for the delayed volume, especially the work of handling weak ground.

Also according to the Department of Construction Investment Management, on January 10, 2023, the Ministry of Transport chaired a field inspection team, requesting investors and project enterprises to direct contractors to increase human resources, especially financial resources, and work overtime to compensate for the delayed progress.

And in the future, if the investor and project enterprise continue to be behind schedule, Project Management Board 6 will, based on the provisions of the signed BOT contract, inspect, review, and comprehensively evaluate the ability to continue implementing the BOT contract, and propose solutions according to regulations.

3 North-South Expressway PPP Projects The Nha Trang - Cam Lam section project has a length of 49.1 km, a total investment of more than VND 5,524 billion, started in September 2021, and is expected to be completed in September 2023. The Cam Lam - Vinh Hao section project has a length of 78.5 km, a total investment of more than VND 8,925 billion, started in September 2021, and is expected to be completed in March 2024. The Dien Chau - Bai Vot section project has a length of 49.3 km, a total investment of more than VND 11,157 billion, started in May 2021, and is expected to be completed in May 2024.

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