Unveiling a Litany of Violations: Inspector Exposes Infractions in Phuc Tri New Urban Area Infrastructure Project

Multi-Year Infrastructure Project Faces Delays

The construction of the new urban area infrastructure in Phuc Tri Street is among 14 public investment projects under scrutiny as part of Plan 1505, following directives from the Ninh Binh Provincial People’s Committee.

Initially approved in 2008 under Decision No. 1686 by the Ninh Binh Provincial People’s Committee, the project was revised in 2009 via Decision No. 1092. The adjusted total investment is VND 77.022 billion, funded by land-use rights auctions, with a planned execution period from 2008 to 2010.

As of the inspection, completed work valued at over VND 65.128 billion (exceeding 92% of the estimate). Cumulative disbursements reached VND 61.276 billion, with outstanding construction debts of VND 3.852 billion. A funding gap of VND 15.746 billion remains.

Critical components, including NB5 Road and land leveling for lots 5 and 6, remain stalled due to unresolved land clearance issues at the Phuc Tri Temple and Public Cemetery.

The Provincial Inspectorate highlighted that compensation plans have not been established, evaluated, or approved in accordance with Article 69, Clause 2 of the 2013 Land Law. Responsibility lies with the Project Management Unit for Infrastructure Funding in Ninh Binh City, the former City People’s Committee, and associated entities.

Procurement Irregularities Identified

The inspection revealed that tender documents and construction contract awards lacked proper authority reviews, violating Decree 58/2008/NĐ-CP (Article 15) and the 2005 Bidding Law (Article 40). The Ninh Binh Provincial Inspectorate attributed primary responsibility to the Project Management Unit and the former City People’s Committee.

Inspectors found discrepancies in project acceptance and payments, inconsistent with design specifications, estimates, and actual volumes. Irregularities totaled VND 1.264 billion, including VND 881.8 million for unaccounted reused soil in water systems and VND 382.6 million in excess landfilling. These actions contravene Article 113 of the 2014 Construction Law.

Involved parties include: the Project Management Unit, Xuan Thanh Investment and Construction Development Co., Ltd., HT Construction and Development Consulting Co., Ltd., and individuals involved in acceptance processes.

The report criticized consultants and evaluators for failing to assess land clearance feasibility at the Temple and Cemetery. The Project Management Unit did not promptly report obstacles, leading to prolonged delays.

The Provincial Inspectorate directed the Civil and Industrial Construction Investment Project Management Board to collaborate with local authorities in reassessing land clearance viability. If unfeasible, the Board must report to the Provincial People’s Committee for project termination and settlement to prevent resource wastage.