Expensive road deteriorates months after being completed

Cracks and deteriorating signs appeared on VND2.7trn (USD119m) Thai Nguyen-Cho Moi Highway which was completed in January.

Cracks and deteriorating signs appeared on VND2.7trn (USD119m) Thai Nguyen-Cho Moi Highway which was completed in January.

The project to build Thai Nguyen-Bac Kan Highway and upgrade the old National Highway 3 cost a total VND2.7trn for 65km. The build, operate and transfer (BOT) project was carried out by the Civil Engineering Construction Corporation 4, Tuan Loc Construction Company and Truong Loc Corporation and Commercial Construction.

Even though the highway hasn't been officially opened, it has been used since February and cracks appeared just months later. About 400 cubic metres of rocks and soil eroded onto the road at Dong Xien Village and caused congestion. Many sections of the road subsided or have cracks and the paved slopes on the side of the road deteriorated badly.

 

Cracks are seen on the Thai Nguyen-Cho Moi Highway on August 24.

The Government Inspectorate has pointed out many wrongdoings. For example, the project was approved even though it didn't have environmental impact report and the investors didn't follow the procedure to ensure the highway's quality such as cutting corners or failing to check the quality of the materials. The total investment was VND100bn (USD4.4m) higher than estimated because of wrong invoices or decisions.

Rocks and soil eroded onto the road at Dong Xien Village.

The inspectorate concluded that the appointment of contractors were not in accordance with the regulations. The contractors failed many requirements, including financial capacity. Their total debts are VND4.8trn (USD211m) but the short-term assets only worth VND3trn.

The contractors were appointed before the investors were given business licenses and the contracts were also not in line with the regulations.