Sign up | Log in



Home  >>   Daily News  >>   Vietnam  >>Transport  >> Transport projects reviewed for overspending
NEW UPDATES Asean Affairs  12 May  2015  

Transport projects reviewed for overspending

 The responsibilities of entities and individuals involved in projects which have exceeded their planned investment capital will be clarified following a recent instruction from the Government.

Under the instruction, the Ministry of Transport has reviewed its projects to avoid exceeding their planned total investment capital.

An increasing number of projects are surpassing their approved investment capital.

Investors who have registered to increase capital have cited construction time, slow site clearance, a shortage of materials, inflated costs of materials and natural disasters as the main reasons. However, the real reason is incompetent contractors.

After reviewing the situation, the ministry found that many projects exceeded their original budgets by 2 – 3 times after construction started.

The Ha Noi-Hai Phong Express Project is a prime example. The project was budgeted at VND24.5 trillion (US$1.13 billion) when the build-operation-transfer (BOT) contract was signed, but following severe delays, the budget has been adjusted to VND50 trillion ($2.31 billion).

The Ninh Binh-Cau Gie Highway budget was increased from VND3.7 trillion (US$170.9 million) to VND8.9 trillion ($411.1 million), and the Cat Linh – Ha Dong Urban Railway Project exceeded its budget by $315.18 million to $868 million.

In a recent meeting, Transport Minister Dinh La Thang said that overspending had caused difficulties in mobilising and refunding capital, so in the future, investors would have to pay the deficit themselves.

Since then, many projects have not exceeded their budgets, and even reduced their planned investment capital.

For example, a flyover project in Ha Tinh Province that was set to cost VND161 billion ($7.4 million) was reduced to VND90 billion ($4.1 million).

The budget for the Ca Pass Tunnel linking Phu Yen and Khanh Hoa was also cut by VND3.7 trillion ($170.9 million) to just VND16.5 trillion ($762 million).

Replacement of management board

After reviewing several projects, the ministry decided to replace the management boards that it blamed for delays or overspending.

The project to expand and upgrade National Highway 1 in Binh Dinh and Phu Yen has made slow progress, causing concerns among local people. After replacing the management board, the project's progress has increased and it is expected to be completed a year ahead of schedule.

For the Ha Noi-Hai Phong Express, the minister visited the construction site and expressed his concerns over the slow progress. He decided to kick out the contractors and told the project's investor to have the highway open to traffic in October this year.

These results show that reviews of these important projects are vital to stopping overspending. — VN

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           May  12 , 2015 Subsribe Now !
• Transport projects reviewed for overspending Subcribe: Asean Affairs Global Magazine
• Telkom expands Internet network in eastern Indonesia
• Domestic tourism on rise as weak rupiah discourages int’l travel
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Thais sign Myanmar energy deals
• Cambodia gets travel laurel
Asean Analysis                   May 1, 2015
• Asean Analysis May 1, 2015
The ASEAN Summit: Harbinger of Future Progress?
Advertise Your Brand

Asean Stock Watch  May 11,  2015
• Asean Stock Watch-May 11, 2015
The Biweekly Update
• The Biweekly Update May 1, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand