HCMC anti-flooding project builder files lawsuit for contract termination

The case is currently being processed by the Thu Duc City’s court, following Anh Vinh Group’s lawsuit against the Regional Construction Investment Project Management Board of Thu Duc City.

The company based in Dong Nai Province is the builder of a drainage system on Vo Van Ngan Street.

The street is a vital artery in Thu Duc but for years it has often experienced severe flooding during heavy rains, seriously affecting residents' daily lives.

Costing VND248 billion, the drainage system upgrade on the street started in October 2020, covering 2.5 km in length.

It is set to be completed in 17 months but work has been dragged on.

As a result, the Thu Duc board decided to end the contract in October last year.

A construction site to renovate the drainage system on Vo Van Ngan Street in HCMC's Thu Duc City results in heavy traffic jam in 2022. Photo by VnExpress/Gia Minh

In the lawsuit, Anh Vinh company requested the court to compel the investor to continue the construction contract package and to advance funds to the company.

The company also seeks compensation for the interest on a previous loan to offset more than VND21 billion in advance for the contract.

The loss calculation period specified by this company is from August 2021 to the present, amounting to over VND6.5 billion.

According to the board, the advance retrieval and contract termination with Anh Vinh were due to the project's sluggish and disorderly progress by this contractor, which violated the contract.

It also said the uncompleted work has been endangering traffic safety.

The board stated that it had facilitated the company in fulfilling the contract, but the contractor did not cooperate and repeatedly abandoned the work despite continuous urging.

After the contract was terminated, the board tendered and selected another unit to carry out the project.

Anh Vinh Group has been involved in many construction packages for infrastructure projects in Ho Chi Minh City, including the Thanh Da peninsula erosion prevention project, the expansion of Do Xuan Hop Street in Thu Duc City.

However, many packages by this company have been delayed, especially in the Thanh Da project, affecting investment efficiency and causing public ire.