Ho Chi Minh City terminates BOT contract for Trung Luong expressway connecting road project worth nearly 1,600 billion

The People's Committee of Ho Chi Minh City has just sent a notice to the Ho Chi Minh City - Trung Luong BOT Investment Company Limited (project enterprise) and Yen Khanh Group Joint Stock Company (investor) about the early termination of the BOT contract for the investment project to build the section connecting Vo Van Kiet Street to the Ho Chi Minh City - Trung Luong Expressway (phase 1).

The intersection of Vo Van Kiet Street with National Highway 1, the starting point of the nearly 1,600 billion VND BOT project, has just had its contract unilaterally terminated by the Ho Chi Minh City People's Committee.

According to the Ho Chi Minh City People's Committee, the reason for terminating the contract is that the project enterprise and the investor have committed serious violations.

Specifically, the investor and project enterprise did not provide agreements, commitments and legal documents related to proving the source of equity, loan capital, and ensuring the implementation of the signed BOT contract in accordance with legal regulations while the deadline for remedying violations of the project's BOT contract expired from July 6, 2020.

The only lending bank has expressed its opinion that it will not continue to provide loan capital to BOT Investment Company Limited of Ho Chi Minh City - Trung Luong according to the signed credit contract because the project enterprise and the investor violated the credit contract, the construction work was delayed and prolonged, which affected the financial plan and revenue to repay the bank.

Although it has been implemented for 9 years, the BOT project connecting Vo Van Kiet Street to Ho Chi Minh City - Trung Luong Expressway has only completed a few pillars and pillars.

In addition, according to the Ho Chi Minh City People's Committee, the investor and project enterprise did not provide legal documents on volume and value as requested.

Previously, the Management Board of Traffic Construction Investment Projects had many meetings and documents requesting investors and project enterprises to review and update relevant information and legal documents; and determine the legal volume and value of the investors.

However, the investor and project enterprise have not yet provided the required legal volume and value documents, although the Ho Chi Minh City People's Committee has extended the deadline until January 31 and the time to audit the volume and value before February 28, 2024.

Ho Chi Minh City determined that the Investor and project enterprise did not coordinate with the Project Management Board for investment in construction of traffic works to provide information and related documents as a basis for determining the volume and legal value of the work performed, and handling contract violations due to the investor's fault.

The investor and project enterprise also refused the right to be paid by the Ho Chi Minh City People's Committee for the volume of work performed under the signed BOT contract and had no basis to complain or file a lawsuit about this matter to the competent authorities as prescribed.

Given the above reasons, the Ho Chi Minh City People's Committee determined that there is no basis for payment for the volume already performed under the signed BOT contract.

The project of the road connecting Vo Van Kiet to Ho Chi Minh City - Trung Luong Expressway is 2.7km long, starting from the Vo Van Kiet - National Highway 1 overpass intersection to the intersection with the access road to Ho Chi Minh City - Trung Luong Expressway.

The project is implemented by Yen Khanh Group Joint Stock Company with a total investment of 1,557 billion VND under a BOT contract. The project started in 2015 but was stopped in June 2018.

Luong Y

Source: https://vtcnews.vn/tp-hcm-cham-dut-hop-dong-bot-du-an-duong-noi-cao-toc-trung-luong-gan-1-600-ty-ar908059.html