TPO – Hoang Dan Company and several other businesses in the Ban Mong project consortium have experienced delays and have been repeatedly reminded and warned by the Ministry of Agriculture and Rural Development to rectify the situation. Notably, this company is also involved in the Canh Tang water reservoir project – a key project that has been delayed and has repeatedly exceeded its budget.
Project company profile
The Investigation Police Department of the Ministry of Public Security has just initiated criminal proceedings against Nguyen Van Dan, Director of Hoang Dan Company, and seven others accused of violations in the investment and implementation of the Ban Mong Reservoir Project (Nghe An province), causing delays and wasting state budget funds.
According to information from Tien Phong newspaper, Hoang Dan Company (Tan An village, Gia Lap commune, Gia Vien district, Ninh Binh province), established on February 9, 2004, is a joint venture with four other contractors that won the bid for the auxiliary dam project under Package No. 36, which includes the spillway, concrete dam, water intake culvert, and auxiliary dam, valued at nearly 1,100 billion VND, in the Ban Mong project.
In this project, the implementation process by Hoang Dan Company, Water Resources Construction Corporation No. 4, and several other enterprises has consistently fallen behind schedule compared to the approved plan.
Hoang Dan Company was assessed as failing to meet requirements regarding key personnel and project progress. The Ministry of Agriculture and Rural Development (MARD) has reminded, corrected, and requested investors to closely monitor the company's contract implementation. If there is no improvement, they should promptly report to the Ministry to temporarily suspend the company's participation in new bidding packages for projects managed by MARD.
In addition to the aforementioned project, according to Tien Phong newspaper's investigation , Hoang Dan Company also participated in package number 17, the construction and equipment installation of the headworks cluster for the Canh Tang Reservoir project (Hoa Binh province). This is also a key Group A project of the Ministry of Agriculture and Rural Development that has been delayed for many years, causing cost overruns and waste. The total investment for the project increased from 3,115 billion VND to 4,128 billion VND. It was expected to be completed in 2022, but has now requested an extension to 2026. Of this, the value of the contract implemented by Hoang Dan Company is 215 billion VND.
It is known that Hoang Dan Company also participated in many bidding packages of the Ninh Binh Provincial Transport Construction Investment Project Management Board; Ha Nam Ninh Customs Department; Gia Vien District Construction Investment Project Management Board; Tuyen Quang City Northern Mountainous Urban Program Project Management Board; Irrigation Investment and Construction Management Board 1…
A representative from the Department of Investment and Construction Management – Ministry of Agriculture and Rural Development stated that, following the arrest of several officials from Project Management Unit 4, the unit is reorganizing and reorganizing personnel to continue completing the work according to the schedule assigned by the Government. The case is still awaiting clarification from the relevant authorities.
Why the cost overrun?
The Ban Mong Reservoir Project, located in Yen Hop commune, Quy Hop district, Nghe An province (Phase 1), was approved in 2009 and is managed by the Investment and Construction Management Board of Irrigation Project 4 – Ministry of Agriculture and Rural Development. The project is funded by the State budget, specifically from government bonds, with a total investment of 3,744 billion VND, including compensation, support, and resettlement components.
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The Ban Mong project has been extended to December 31, 2025. |
The project commenced in 2010 and was expected to be completed in 2015. However, due to a lack of funding, the 2011-2016 phase had to be temporarily suspended. Ministries, departments, and localities have worked to resolve the issues, but the project remains stalled due to legal obstacles.
Regarding this issue, a representative from the Ministry of Agriculture and Rural Development previously informed Tien Phong newspaper that the 2019 Public Investment Law does not have transitional provisions for projects previously approved in principle by the Prime Minister (but without an investment policy decision), which require additional investment capital approval but lack clear authority to make such decisions.
The Ministry of Agriculture and Rural Development submitted to the competent authorities a project to build a water canal system (separated into an independent project) with a budget of approximately 1,800 billion VND, including additional funds for land clearance (mainly in Thanh Hoa province) and additional funds for construction. The project budget was later adjusted upwards by another 1,800 billion VND.
In 2022, the project was approximately 95% complete with an invested capital of about 5,550 billion VND, excluding capital from the enterprise investing in the hydropower component. However, the subsequently allocated capital was still short by 234 billion VND, leaving the completion date of this key Group A agricultural project uncertain.
On October 26, 2023, the Prime Minister assigned the Ministry of Agriculture and Rural Development to review and balance the budget within the scope of the total medium-term public investment plan for the period 2021-2025.
Earlier this year, the Prime Minister approved the adjustment of the investment policy; the Ministry of Agriculture and Rural Development approved the adjustment of phase 1 of the project. The goal is to complete phase 1 of the project before December 31, 2025.
Source: https://tienphong.vn/lum-xum-du-an-ban-mong-nha-thau-da-nhieu-lan-bi-so-gay-post1688279.tpo
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