Renovation of HCMC's longest canal paused after contractor's chairman arrested

By Gia Minh   April 19, 2024 | 02:24 am PT
Renovation of HCMC's longest canal paused after contractor's chairman arrested
The construction site of a project to renovate Tham Luong – Ben Cat– Nuoc Len canal in HCMC, August 2023. Photo by VnExpress/Thanh Tung
Thuan An Corporation has stopped construction at a major canal renovation project in Ho Chi Minh City following the arrest of its leader.

The company participated in two contract packages to renovate the environment of the Tham Luong – Ben Cat– Nuoc Len canal, the longest in HCMC that stretches 32 km. In each package, it joins hands with another company to form joint ventures to carry out the work.

The company has been requested to clarify its ability to continue the bid packages of the project.

In one package, which costs VND130 billion (US$5,122), Thuan An is responsible for constructing traffic routes and technical infrastructure (excluding greenery, street lighting) on the right bank of the canal, which costs 13.8% of the contract value.

For the other, which is carried out on a section of 2.8 km, Thuan An is also a member of a consortium and in charge of building traffic routes and technical infrastructure. Its work accounts for 11.7% of the contract’s total value, which is VND458.3 billion.

According to the Ho Chi Minh City Urban Infrastructure Construction Investment Projects Management Unit, which manages the canal renovation project, Thuan An has currently halted its work on the two packages. The site's command staff and workers have not been present.

To avoid impacting the project's progress, the unit now requests Thuan An to provide an official letter clarifying the company's ability to continue the contracts for the two bid packages, including details on the company's organizational structure and legal representative replacements.

The company must make a report and send it to the unit before April 25, otherwise, it will be considered a contract violation.

The canal renovation project, which started a year ago, has a total capital of VND8.2 trillion from the state budget.

Thuan An Corporation, based in Hanoi, was established in 2004 with Nguyen Duy Hung as the chairman.

Hung was arrested Monday for "violating regulations on bidding causing serious consequences" and "giving bribes."

Thuan An operates in the fields of investment, construction of technical infrastructure projects, electricity and renewable energy trading, and real estate.

In recent years, the company has won dozens of construction and installation bid packages nationwide.

In Ho Chi Minh City, apart from the canal renovation project, the company also participates in the Ring Road No.3 project and the Nguyen Van Linh – Nguyen Huu Tho interchange tunnel project at the city's southern gate.

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