Stop BOT contract of 3,800 billion project connecting Hai Phong

In Document No. 383/BC-UBND, Hai Phong City People's Committee informed that due to difficulties and obstacles of the investor, the coastal road construction investment project through Hai Phong City and 9 km in Thai Binh province (Coastal road project connecting Hai Phong - Thai Binh) cannot be completed in 2023. Currently, the investor is reviewing and determining the exact and specific completion time of the project.

Thus, more than 6 years since the commencement date, with the Hai Phong City People's Committee extending the progress many times, the investor of the coastal road project connecting Hai Phong - Thai Binh, the joint venture between Construction Corporation No. 1 - JSC (CC1) and Bui Vu Investment and Construction Joint Stock Company, has continuously missed the completion date.

The coastal road project connecting Hai Phong - Thai Binh is continuously behind schedule and cannot be completed in 2023.

Initially, the coastal road project connecting Hai Phong - Thai Binh encountered some difficulties and problems related to site clearance. Faced with this situation, the Hai Phong City and Thai Binh Province authorities focused on developing plans, paying compensation, providing support, and encouraging households to hand over the site as soon as possible.

Thanks to that, Hai Phong City has basically recovered 102 hectares of land related to 1,523 households and handed it over to the construction unit. Thai Binh Province has also handed over 37.58 hectares of recovered land from 710 households and organizations to the construction unit. The construction unit of the coastal road project connecting Hai Phong - Thai Binh has enough land to construct the items.

According to information from the People's Committee of Hai Phong City in Document No. 383/BC-UBND, the biggest difficulty in the implementation of the coastal road project connecting Hai Phong - Thai Binh is that there have been problems and inadequacies related to the application of regulations on loan interest rates, leading to a large difference between the interest rate that the project enterprise must account for with the lender and the interest rate settled according to the provisions of the BOT contract. Specifically, the lenders are TPBank (Tien Phong Commercial Joint Stock Bank) and CC1 (Construction Corporation No. 1 - JSC).

The failure to adjust the loan interest rate leads to great risks for the investor. Therefore, the investor of the coastal road project connecting Hai Phong - Thai Binh has issued Document No. 150/HPRC-DA on stopping the implementation of BOT Contract No. 68/HD.BOT until the parties negotiate and adjust the loan interest rate and the principles for determining the loan.

Based on the proposal of the investor and relevant local departments and branches, the People's Committee of Hai Phong City issued Document No. 2482/UBND-GT reporting and requesting the Prime Minister to agree in principle to adjust the loan interest rate of the BOT Contract for the coastal road project connecting Hai Phong - Thai Binh according to the provisions of Clause 2, Article 14 and Clause 3, Article 26 of Circular No. 88/2018/TT-BTC of the Ministry of Finance.

Up to now, the People's Committee of Hai Phong City is still waiting for the Prime Minister's approval on adjusting the loan interest rate of the BOT Contract for the coastal road project connecting Hai Phong - Thai Binh. The project continues to "miss its deadline", unable to be completed in 2023 according to the previous extension.

The construction unit used concrete panels to block traffic from entering the coastal road project connecting Hai Phong - Thai Binh.

Regarding the coastal road project connecting Hai Phong - Thai Binh, Nguoi Dua Tin previously published an article: "Hai Phong: People look forward to the 3,800 billion VND transport project" with the content: The coastal road project connecting Hai Phong - Thai Binh is one of many trillion-VND projects invested in construction to serve the socio-economic development goals of Hai Phong City as well as promote intra-regional and inter-regional trade.

The project has a total length of nearly 30 km, of which the section passing through Hai Phong City is nearly 21 km long, and nearly 9 km passing through Thai Binh province. The total initial investment of the project is more than 3,400 billion VND in the form of public-private partnership (BOT).

Of which, 720 billion VND is the State capital participating in the project implementation, taken from the Government bond capital used to serve the site clearance work. The rest is the investor's capital and loan capital. The project recovers capital through toll collection, expected to take 23 years.

The investor of the coastal road project connecting Hai Phong - Thai Binh is a joint venture between Construction Corporation No. 1 - JSC (CC1) and Bui Vu Investment and Construction JSC. The enterprise assigned by the investor to directly manage and implement the project is Hai Phong Coastal Road Investment Company Limited.

The project started on May 13, 2017 and was expected to be completed in 2019. However, due to many difficulties related to landfill materials, the impact of the COVID-19 pandemic, and the investor's capital, the project could not be completed on time. By the end of October 2023, the project was still unfinished, with many items "shelved" or under construction at a slow pace.

Up to now, the construction value of the coastal road project connecting Hai Phong - Thai Binh is estimated at 1,746/2,465 billion VND, equal to nearly 71% of the construction cost .

Source: https://www.nguoiduatin.vn/dung-hop-dong-bot-du-an-3-800-ty-noi-hai-phong-thai-binh-a636571.html