Ho Chi Minh City People's Committee has just issued Notice No. 467/TB-UBND to the investor Yen Khanh Group Joint Stock Company and the project enterprise, Ho Chi Minh City - Trung Luong BOT Investment Company Limited, regarding the early termination of the BOT Contract for the project to build the section connecting Vo Van Kiet Street to Ho Chi Minh City - Trung Luong Expressway (phase 1).

The announcement of the Ho Chi Minh City People's Committee clearly stated that the reason for unilaterally terminating the BOT Contract before the deadline was due to the serious violation by the investor and the project enterprise when they failed to provide agreement documents, commitments and legal documents related to proving the source of equity capital, loan capital, and ensuring the implementation of the signed BOT Contract.

Meanwhile, the deadline for correcting violations of the BOT Contract expired on July 6, 2020.

The starting point of the project connecting Vo Van Kiet Street to Ho Chi Minh City - Trung Luong Expressway has been degraded due to being abandoned for many years. Photo: Le Quan

Furthermore, Lien Viet Post Joint Stock Commercial Bank (the sole representative of the lender) did not continue to provide loan capital to implement the Project, so the project enterprise and the investor violated the credit contract, causing the construction work to stagnate and prolong.

In addition, the investor and the Project enterprise could not provide legal volume and value documents as required by the Ho Chi Minh City People's Committee.

Regarding payments and compensation for violations of the signed BOT Contract, the Ho Chi Minh City Traffic Construction Investment Project Management Board has organized many meetings and sent documents requesting investors and project enterprises to review and update relevant information and legal documents, determine the volume and legal value performed by the investor to make settlement payments according to regulations.

However, up to now, the investor has not yet provided the required legal volume and value documents, although the Ho Chi Minh City People's Committee has extended the time to provide sufficient documents.

Because the investor and project enterprise did not coordinate with the HCM City Traffic Construction Investment Project Management Board (the Contract supervision unit) to provide information and related documents as a basis for determining the volume and legal value of the work performed, the fault was determined to be the investor's according to the provisions of Article 69.3 of the signed BOT Contract.

Therefore, the Ho Chi Minh City People's Committee believes that the investor refuses the right to receive payment from the City for the completed volume and has no basis to complain or file a lawsuit against this matter to the competent authorities as prescribed.