Contractor of flood prevention project in Thu Duc sues investor for contract suspension

Ho Chi Minh City Anh Vinh Company sued the investor, demanding compensation of 6.5 billion VND after the construction of the flood prevention project on Vo Van Ngan Street, Thu Duc City was stopped.

The case is being handled by Thu Duc City Court, after Anh Vinh Group Joint Stock Company sued the Thu Duc Area Construction Investment Project Management Board (investor) regarding the construction contract for the Vo Van Ngan Street drainage system construction project.

This is a vital route in Thu Duc, but it is often flooded during heavy rains, affecting people's lives. The renovation project has a total capital of more than 248 billion VND, is nearly 2.5 km long, and has been implemented nearly 4 years ago but has not been completed yet. Anh Vinh Company, the main construction contractor of this project, has had its construction contract suspended.

Bunkers at the flood prevention project on Vo Van Ngan Street during construction by Anh Vinh Company, late 2022. Photo: Gia Minh

In the lawsuit, Anh Vinh Company requested the court to force the investor to continue implementing the construction contract and pay the enterprise an advance.

The company also wants to be compensated for the interest on the previous loan to make up for the advance payment of more than 21 billion VND to perform the contract, which was later revoked by the investor. The time to determine the damage calculated by this business from August 2021 to now is more than 6.5 billion VND.

According to the Thu Duc City Construction Investment Project Management Board, the withdrawal of advance payment and termination of contract with Vinh Anh Company was due to the slow and messy implementation of the project. This violated the contract and did not ensure traffic safety.

Direction of Vo Van Ngan Street. Graphics: Thanh Huyen

The investor said that he had previously created conditions for Anh Vinh Company to execute the contract, but the contractor did not cooperate. The contractor repeatedly abandoned the project despite the investor's constant urging. After terminating the contract, the investor bid and selected another unit to execute the project.

Anh Vinh Company is the contractor for many infrastructure projects in Ho Chi Minh City. In addition to the project on Vo Van Ngan Street, the company participates in the projects to prevent landslides on Thanh Da Peninsula (Binh Thanh District), and to expand Do Xuan Hop Street... However, many projects that this company is in charge of are delayed, especially in Thanh Da area, affecting investment efficiency and making people angry.

Previously, at the Vo Van Ngan street drainage project, the construction process was messy and unsafe for traffic, so the above unit was fined many times by the Department of Transport Inspectorate.

Gia Minh

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