Tunnel project takes steps to ensure success

Project developer Deo Ca Investment JSC just convened a special meeting of all stakeholders in the projects to set clear financial policies for contractors handling construction under the build-operate-transfer (BOT) model.

According to Deo Ca Investment JSC’s general director Ho Minh Hoang, the developer will advance 45 per cent of the maximum contract value to contractors, a record high level aimed at pushing progress.

 “Contractors were also told that they needed to set aside 10 per cent of the total tender package to return to the developer as risk provisioning or rewarding contractors who meet targets and with high quality standards. In contrast, they were warned that if they violate their contracts, however small, they will be penalised, or even replaced,” said Hoang.

Hoang confirmed that the project was completely transparent to ensure there are no hurdles to its execution.

Regarding the progress of the project, by December 15, any contractors failing to provide the materials and manpower needed to kick-off the bidding package on opening the tunnel’s northern gate before December 20 would face being replaced, said a source from the developer.

Opening the tunnels northern and southern gates is a complex part of the project that will play a decisive role in its progress. The project also faced difficulties with site clearance and the lack of service roads, which caused several delays.

“The northern temporary service road is now complete and the southern road is in progress and will be completed before the New Year. The power system will also be complete by the end of the year. Financial policies were made clear to contractors to ensure they act capably and responsibly. Delays are unacceptable,” said Hoang.

Hoang said the bid package for the opening of the tunnel gates was a test for the developer in selecting capable contractors to execute the core of the project – internal construction.

In respect to the project’s financial policies, general director Tang Van Chuc at Lung Lo Construction Corporation, leading the consortium on building the tunnel’s southern section said he thought it was perfect for contractors.

“We are now poised for kick-off,” said Vu Van Hung, general director of Tranimexco, leading the consortium on building the tunnel’s northern section.

Progress targets:

* Executing Deo Ca tunnel northern and southern gate: January-June 2014

* Tunnel construction: 27 months from June 2014 to September 2016

* Equipment installation: 16 months from March 2016 to July 2017

* Bidding packages on building Co Ma tunnel, northern and southern approach roads: To be completed before September 2016.

(Source: Deo Ca Investment JSC)