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Saturday, November 28, 2020

Late disbursement said to be reason for Chinese contractor’s capital demand

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HCMC – The Chinese contractor stated that the late disbursement of funds in the Cat Linh-Ha Dong railway project prompted it to demand US$50 million to pay the subcontractors and experts.

On June 3, Tang Hong, director of the Cat Linh-Ha Dong metro project, said that since February, the capital disbursement for the project was yet to be done, hindering the Chinese contractor from paying the subcontractors.

While most of the project equipment has been completed, Hong noted that the payment for the workload was yet to be made, VnExpress news site reported.

“The payment for the project has reached 78% of the contract value, while we need it to be 86%,” Hong said.

The Chinese contractor asked the Railway Project Management Unit to pay US$50 million, in line with the provisions of the contract at an online meeting in May so that it could make payments to contractors, subcontractors and experts while operating the Cat Linh-Ha Dong urban railway on a trial basis.

This is the payment for the construction workload in accordance with the engineering, procurement and construction contract but not the increased costs, Hong said.

Meanwhile, Vu Hong Phuong, director of the Railway Project Management Unit, said that the documents sent to the unit by the Chinese contractor were not eligible, so the unit could not make any payment.

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