VEC proposes suspending work on Ben Luc-Long Thanh expy project

In a statement sent to the Government Office on the progress of the expressway project, connecting HCMC and Long An and Dong Nai provinces, VEC stated that the extra costs for the remaining nine packages have yet to be added to its calculations, Tuoi Tre Online newspaper reported.

The additional costs arising from the execution of the J1 package to build Binh Khanh bridge, spanning the Soai Rap River and connecting HCMC’s Nha Be and Can Gio districts, and the J3 package to build Phuoc Khanh bridge, spanning the Long Tau River and linking HCMC’s Can Gio District to Dong Nai Province’s Nhon Trach District, were US$32 million and US$38 million, respectively.

In the middle of last year, the contractors for the two packages repeatedly complained about the investor’s delays in making payments. The contractor for the J3 package stopped work on the package on September 20 last year, while work on the J1 package was stopped on October 28 last year.

To minimize legal risks and losses for the State, VEC has proposed suspending work on all packages sponsored by the Japan International Cooperation Agency.

The corporation has also suggested the suspension of packages sponsored by the Asian Development Bank if obstacles in the form of legal procedures are not removed and contractors face a shortage of capital.

Work on the Ben Luc-Long Thanh expressway project, which required an estimated investment of VND31.3 trillion, began on July 19, 2014. The Ministry of Transport initially expected the project to be completed and put into operation in 2018.

However, the project is only 76% complete so far.

An official at VEC’s Southern Expressway Projects Management Unit said only 200 engineers and workers are working on 11 packages of the expressway project. They are mainly protecting the equipment.

Meanwhile, the project’s execution needs some 2,000 engineers and workers.