Hanoi leaders blamed for blowing millions on late, expensive infrastructure projects

By Ba Do   July 20, 2017 | 05:20 pm GMT+7
Hanoi leaders blamed for blowing millions on late, expensive infrastructure projects
The overpass bridge at the roundabout in Long Bien District of Hanoi. Photo by VnExpress/Nhat Quang

Contractors and investors were hand-picked for most of the projects, which were not put out for tender.

Government inspectors have blamed authorities in Hanoi for 15 infrastructure projects that are running either behind schedule or above budget.

The projects were approved between 2008-2012 to be carried out under the Build-Transfer (BT) model, but Hanoi only invited contractors to bid for one of them, and hand-picked the others.

When questioned by inspectors, local authorities claimed that the other 14 projects were urgent and that there was not enough time to put them out for tender, but they were unable to justify the urgency.

On top of that, some of the investors, such as Tasco Joint Stock Company and Bitexco, simply didn't have enough money to complete the projects on time.

General "carelessness" on the part of Hanoi authorities had led to some projects costing far more than expected, according to inspectors.

Gamuda Land Vietnam Co. Ltd, a subsiduary of Malaysia’s Gamuda Berhad Group, started construction of the Yen So sewage treatment plant in Hoang Mai District before the design had been approved, and it ended up costing $11.5 million more than budgeted.

An overpass in Long Bien District also exceeded its budget by VND60 billion ($2.64 million).

And the list goes on.

A road around the Chu Van An Memorial is VND28 billion above budget; a further VND19.5 billion is needed for work on Le Duc Tho – Xuan Phuong Street; and a massive VND920 billion is needed to complete a highway in southern Hanoi.

Inspectors have asked the government to deal with the situation.

Tags: Vietnam Hanoi