$3.4mn waste treatment project delayed for 7 years in Vietnam’s Hue
Monday, February 10, 2025, 19:05 GMT+7
After seven years of construction, a US$3.38-million waste treatment project in Hue City, central Vietnam remains unfinished due to slow progress by one of the three contractors.
Work on the waste treatment project, which was approved by authorities in 2017, started in 2018 in Huong Binh Commune, Huong Tra Town, with an initial completion target set for 2022.
The project's goal is to mitigate environmental pollution caused by household waste in several parts of the city, including Phong Dien, Quang Dien, and Huong Tra, processing 150 metric tons of waste per day in its first phase.
With a total investment of nearly VND86 billion (US$3.38 million), the project is overseen by the Hue City Urban Development and Investment Project Management Board.
However, seven years later, only 80 percent of the construction has been completed, and just over VND50 billion ($1.9 million) has been disbursed.
One of the three contractors, Thien Phat Thinh Company, has only completed approximately 63 percent of its contracted work, equivalent to VND11.6 billion ($457,000) out of an VND18.38-billion ($724,200) contract.
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| A partially constructed landfill cell at the waste treatment project site. Photo: T.Xuan |
Ha Xuan Hau, director of the city’s project management board, said that Thien Phat Thinh failed to make progress, particularly in completing two landfill cells.
The company has also not procured or installed essential waste treatment equipment as required and has stopped all construction since June 2023 without explanation.
Due to these violations, the contractor has been fined over VND205 million ($8,079) for project delays.
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| The construction site of the waste treatment project sits abandoned, with no workers in sight. Photo: T.Xuan |
The project management board has formally requested that the Hue City People's Committee terminate Thien Phat Thinh’s contract, citing repeated breaches and failures to meet deadlines.
Hau said that the project management board was finalizing procedures to terminate the contract with this company.
“Another contractor will take over the remaining work, and we expect construction to resume in 2025,” Hau added.
Additionally, the city will allocate another VND5 billion ($196,800) this year to finish phase one of the project.
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