The construction site of Hoang Van Thu Bridge in Hai Phong city (Source: VNA)Hai Phong (VNS/VNA) - Most constructionprojects in the northern port city of Hải Phòng are running well above theirinitial cost estimates, with the cost hikes in some cases reaching thousands ofbillions of VND, according to a recent inspection by the GovernmentInspectorate.
The findings were announced by the GovernmentInspectorate after it completed an inspection on the implementation ofconstruction investment management regulations in Hai Phong for the 2017-2020 period.
The cost of a project to upgrade Road 356 in thecity, which was approved in 2010 with total investment of 315 billion VND (13.7million USD), increased to almost 1.3 trillion VND (49 million USD).
Another project, Dinh Vu Sea Dyke, approved in2010 with investment of 998 billion VND (43.9 million USD), saw a cost hike ofmore than 3.2 trillion VND (140.9 million USD). This project is still waitingfor capital at the moment.
The southeastern ring road of Hai An districtwas approved in 2009 at a cost of 886 billion VND (39 million USD), but wasadjusted to more than 2 trillion (88 million USD) in 2012.
Several other projects were also on the list,including the Cat Ba Fishing Boat Wharf project, Tran Phu High Schoolconstruction project, a student apartment building project and the Khue Bridgeproject.
According to the Government Inspectorate, all ofthese projects’ costs were adjusted from time to time and their constructiontime lengthened from four to seven years.
Examination of contractors’ competence revealedthat many selected contractors were not capable of implementing the projects,namely CP Construction Company, IMICO – Phuc Loc joint venture and ACC - IMICO- Phuc Loc Joint Venture.
While Hai Phong city’s authorities had madeefforts to conduct State management over construction quality, the recentinspection discovered a number of quality and progress problems.
Land clearance delays caused tardiness in manyprojects. The Dinh Vu Industrial Zone main road project was 25 months behindschedule and the Khue Bridge construction project was 15 months delayed. Forthe Tran Phu High School project, land clearance took almost five years.
Meanwhile, many projects were approved withoutan evaluation report on environmental impact, such as the construction of themain road in Dinh Vu Industrial Zone, the Dinh Vu Sea Dyke Project and the NgoQuyen district resettlement project.
Investors in some projects reportedly portrayedtheir projects as urgent in order to shorten all biddings and contractorselection procedures. However, the inspection team found out that theseprojects turned out otherwise.
The Government Inspectorate therefore proposedthat investment capital for many projects be reduced. It is also suggested thatrelevant Hai Phong city’s authorities be disciplined for the violations andproblems mentioned.-VNS/VNA
VNA
