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Ho Chi Minh City ends massive pump rental contract

Ho Chi Minh City ends massive pump rental contract

Wednesday, May 10, 2023, 16:40 GMT+7
Ho Chi Minh City ends massive pump rental contract
Cars travel on Nguyen Huu Canh Street in Binh Thanh District, Ho Chi Minh City. Photo: Chau Tuan / Tuoi Tre

The Ho Chi Minh City Department of Construction sent an announcement on the termination of a massive pump rental contract for Nguyen Huu Canh Street in Binh Thanh District with Quang Trung Industry Group JSC as the street is no longer flooded after downpours.

The municipal department said in the announcement that the Nguyen Huu Canh Street repair and upgrade project was completed in April 2021, and since then, the route has not faced inundation. 

As such, the Ho Chi Minh City People’s Committee decided to halt the pump rental for Nguyen Huu Canh Street, according to the municipal department.

The department proposed that Quang Trung Group, which is the provider of the pump system, work with the Ho Chi Minh City Infrastructure Management Center to conduct procedures to end the pump rental contract.

The municipal department also expressed its gratitude for the firm’s contribution to the city’s efforts in controlling flooding on Nguyen Huu Canh Street.

Ho Chi Minh City signed a pump rental contract to control flood tides on Nguyen Huu Canh Street with Quang Trung Group in April 2018, for seven years, from 2017 to 2023.

The contract to rent the pump, with a capacity of 97,000 cubic meters an hour, is valued at over VND14 billion (nearly US$600,000) a year.

However, since early 2022, the route has not witnessed floods as the Nguyen Huu Canh Street upgrade project was completed and features a new drainage system.

As such, the Ho Chi Minh City Infrastructure Management Center, which was assigned to cut the deal with Quang Trung Group for the pump rental, negotiated with the firm for the early contract termination.

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Tieu Bac - Chau Tuan / Tuoi Tre News


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