Why is the Song Quao Water Plant project not completed?

After many years of implementation, the Song Quao Water Plant Project, part of the Ham Thuan Bac water system, has not yet been completed. Therefore, the Standing Committee of the Provincial People's Council requested the Department of Agriculture and Rural Development to identify subjective and objective causes and solutions in the coming time... This is one of the contents mentioned at the explanation session between the two sessions of the Provincial People's Council in 2024.

Many reasons lead to slow progress

According to the Department of Agriculture and Rural Development, according to the Memorandum of Understanding, the project has a total investment of 17.7 million Euros, equivalent to 460,200 million VND. Of which, the preferential loan from the Italian Government is 15 million Euros, used to carry out the design survey, construction supervision, construction and installation of the project and a non-refundable aid of 600,000 Euros, domestic counterpart capital is 2.7 million Euros, including operating costs of the Project Management Board (PMU), compensation costs, site clearance, construction costs of the main canal of the Ca Tot reservoir and value added tax, customs tax on goods purchased from preferential loans from Italy. The project consists of 2 components, of which the component of the Clean Water Supply System of Ham Thuan Bac district has an investment scale including the construction of a domestic water supply plant with a capacity of 10,000 m3/day, a raw water lake; booster pumping station, Ham Liem commune transaction station and 115.5 km of water supply pipeline with a total investment of 162 billion VND.

*Main canal of Song Quao (illustrative photo) of Ngoc Lan.*

It is worth noting that the project is still in the process of implementation, although the investor has regularly urged to speed up the construction progress to complete the project and disburse the completed volume. However, currently, in addition to the reasons for arising items not included in the contract (rock excavation work) and some subjective reasons from the contractor joint ventures affecting the construction progress, there are still some subjective reasons from the professional agencies.

*Nguyen Huu Phuoc - Deputy Director of the Department of Agriculture and Rural Development spoke at the explanation session. Photo: KH*

Specifically, the coordination between the project investor and relevant departments, branches and localities in compensation and site clearance is still slow, leading to delays in land allocation for implementation of related items. In addition, the study of the project implementation process, especially understanding the international bidding regulations and the negotiation and consultation with partners as a basis for project implementation, has not received due attention, so when implementing the project in practice, there are many problems and delays. At the same time, the report of the Department of Agriculture and Rural Development has not shown the responsibility of each agency and unit in the delay in project implementation, and has not proposed specific solutions to resolve related problems.

ho-song-quao-anh-n.-lan-2-.jpg — *Song Quao Lake. Photo: N.Lan*

Strive to complete in September 2024

At the explanation session of the Provincial People's Council in early March 2024, Mr. Nguyen Huu Phuoc - Deputy Director of the Provincial Department of Agriculture and Rural Development mentioned the subjective reason that the project had conducted the survey and prepared a feasibility study report more than 10 years ago, the current status, regulations, standards, and technology on construction investment have changed a lot and need to be updated, adjusted, and supplemented with geological and topographic surveys to suit the actual situation. Regarding site clearance, the addition to the land use planning of the booster pumping station and Ham Liem commune transaction station and the adjustment of the construction location took a lot of time... Regarding the construction site, during the construction of the 10,000 m3/day water plant, the contractor opened the foundation of the water plant and discovered that the foundation was rocky geology at the location of the tank construction, so the contractor temporarily stopped construction...

*Chairman of the Provincial People's Council Nguyen Hoai Anh directed at the explanation session. Photo: KH*

Accordingly, the Department of Agriculture and Rural Development will direct the Water Project Management Board to urge contractors to concentrate equipment, materials, and human resources, request contractors to increase construction in 3 shifts, promptly remove difficulties and obstacles during construction; coordinate with localities to mobilize and facilitate the handover of pipeline construction sites. At the same time, request joint contractors to develop a detailed construction schedule for the remaining work volume as a basis for accelerating construction progress. At the same time, urge payment records for disbursement of on-site work volume. Speed up disbursement progress, urgently construct to put the completed project into use in September 2024 and complete the final settlement at the end of 2024.

To ensure the project progress as planned, at the explanation session, Comrade Nguyen Hoai Anh - Standing Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Council requested the Provincial People's Committee to direct departments and branches to focus on studying regulations, especially regulations related to bidding and negotiation with international contractors to propose to the Provincial People's Committee directions to thoroughly handle outstanding issues, speed up the project implementation progress. Organize work with the consortium of contractors to urge the acceleration of construction progress according to the contractor's commitment, review the terms of responsibility under the signed contract to handle in accordance with legal regulations; regularly monitor progress, grasp difficulties and obstacles to accompany, remove (recommend removal), speed up the project progress. In particular, it is necessary to study, propose, advise the Provincial People's Committee to direct each specific task for each unit associated with the responsibility of the head in handling specific obstacles. At the same time, closely coordinate with the People's Committee of Ham Thuan Bac district to urgently study, propose locations, and allocate land for the project investor to implement the construction of the booster pump station and Ham Liem commune transaction station to ensure progress according to plan. Urgently report to the Provincial People's Committee to submit to the Provincial People's Council for consideration and transfer of the 2023 public investment capital plan to the 2024 plan to continue implementing the project according to the authority prescribed in the Law on Public Investment.

The Song Quao Water Plant was signed by the Government of Vietnam and the Government of Italy with a memorandum of understanding effective from May 22, 2009 to May 22, 2014 and has been extended to December 30, 2024. The project was approved by the People's Committee of Binh Thuan province in Decision No. 632/QD-UBND dated March 7, 2007, and adjusted in Decision No. 821/QD-UBND dated March 28, 2018. The project is invested by the Department of Agriculture and Rural Development of the province.

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