The Billion-Dollar Machinery Left to Rust in Vietnam’s Central Highlands

The left bank reinforcement project of the Ba River, worth nearly VND 1,300 billion in Tuy Hoa Ward, Dak Lak City, has been delayed due to slow site clearance. This has led to a peculiar scenario where numerous construction machines and equipment are left idle, basking in the sun and gathering dust, awaiting the commencement of work.

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The project to prevent erosion on the left bank of the Ba River in Phu Hoa district (now Tuy Hoa ward) is led by the Project Management Unit for Construction Investment in the East of Dak Lak province. The project has a total investment of nearly VND 1,272 billion and is implemented in the period of 2019-2026. It includes the following components: construction of an embankment to prevent erosion, technical infrastructure, transportation, and dredging to clear the waterway.

The project consists of two packages: Package 02XL, which involves the reinforcement of Phu Loc embankment and is progressing smoothly, and Package 01XL, which includes four components: construction of an embankment to prevent erosion, technical infrastructure, transportation, and dredging to clear the waterway. However, Package 01XL has encountered challenges with site clearance, causing construction equipment and machinery to remain idle, waiting for the site to be cleared.

Package 01XL requires the retrieval of 287 land plots (92.74 hectares), including 156 plots managed by the local government and 131 plots belonging to households. While the People’s Committee of Phu Hoa district has conducted a survey of 220 households and 1 construction work of Phu Yen Water Supply and Drainage JSC, only 50 out of 86 households with agricultural land have been identified, and 45 households with residential land remain unidentified. The district has not yet established land prices, hindering the process of formulating compensation and resettlement plans. Additionally, there is no support plan for 89 households cultivating crops on public land.

Mr. Hoang Van Quoc, General Director of Central Infrastructure Investment Joint Stock Company (the contractor for Package 01XL), stated that since November 2023, the company has prepared hundreds of thousands of cubic meters of soil and stone, thousands of precast concrete pipes, along with specialized equipment and labor to ensure construction capacity and meet the committed schedule.

However, due to site clearance delays, the contractor has only completed the foundation of the embankment on the left bank of the Ba River, with a construction value of approximately VND 306 billion, equivalent to nearly 36% of the contract value.

To expedite progress, the contractor also advanced nearly VND 2.8 billion for compensation and support for trees and crops of 61 out of 89 households cultivating on land managed by the local government, thereby expanding the cleared area for project construction.

According to the Management Board for Construction Investment in the East of Dak Lak province, they have recently requested the new local authority, the People’s Committee of Tuy Hoa ward, to continue identifying the remaining cases, including 36 households with agricultural land and 45 households with residential land and houses. They have also urged the quick approval of specific land prices to calculate compensation and support for site clearance in the project.

Additionally, they have requested the Tuy Hoa branch of the Land Development Fund Center to promptly establish and submit a compensation plan for the 89 households cultivating crops on public land to refund the advanced amount paid by the contractor. They have also requested Phu Yen Water Supply and Drainage JSC to expedite the relocation of the Hoa An water intake work and construct a new one according to Decision 1202/QD-UBND to hand over the site for the implementation of Package 01XL.

Construction equipment and machinery have been left idle due to site clearance delays, causing financial losses for the contractor.

Hundreds of drainage pipes lie unused, waiting for site clearance.

According to the leadership of Tuy Hoa ward, they have just received the transferred documents from the former local authority and are in the process of reviewing and implementing related tasks to expedite site clearance for Package 01XL of the project to prevent erosion on the left bank of the Ba River.

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