Harbour construction delays raise fears among boat owners

THUA THIEN-HUE — The tardy progress of the construction of a US$2.1 million harbour in the central province of Thua Thien-Hue has left hundreds of boat owners worried for the safety of their vessels during the fast approaching stormy season.

The Phu Hai breakwater project was started in 2008 by the provincial Department of Agriculture and Rural Development and was expected to provide safe moorings to 500 boats. It was due for completion in May of this year.

However, the project was still not finished and was unlikely to be completed by the end of this year, said Phan Van Song, Phu Hai Commune's Party Committee Secretary.

Song said that the project's progress was lagging behind because the contractor, Vinashin Infrastructure Construction and Development Company, was short of both construction facilities and human resources.

"The work must be urgent, but there were only a few workers on the construction site," he said.

According to industry expert Tran Cong Dang Tuong, only around 300 metres of the total 625-metre-long breakwater needed had been completed and other sections also remained unfinished.

Phan Thanh Hung, head of the province's Sub-department of Dyke Management, Flood and Storm Control said that relevant parties had agreed to push back the deadline until June 2011.

The province's Department of Agriculture and Rural Development did not want to change to another contractor as the process of tendering and the transfer of documents would take too long, Hung said.

Currently there are 4,000 boats and ships operating in the waters off the province and of the 32 harbours available, only 12 were correctly constructed with safe wharves. — VNS

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First phase of Ha Noi bridge finished

The first phase of the Vinh Tuy Bridge has been completed in time for the 1,000th anniversary celebrations of Thang Long-Ha Noi. — VNA/VNS Photo Anh Ton

HA NOI — Deputy Prime Minister Hoang Trung Hai inaugurated Vinh Tuy Bridge's first phase yesterday in Ha Noi.

The bridge is set to be the widest bridge in Viet Nam and is one of the major construction projects that is celebrating the 1,000th anniversary of Thang Long-Ha Noi.

Construction of the bridge kicked off in 2005. The bridge is the first major project financed by the municipal People's Committee with VND3.6 trillion (US$185 million) in total investment capital.

Hai said he highly valued the effort put forward by municipal leaders, the Ministry of Transport, the Ministry of Construction and related agencies.

He spoke highly of the contributions made by workers and residents, who have overcome difficulties to build the bridge.

Hai said this was an extremely important project and the bridge was a developmental milestone that would promote the city's industrialisation and modernisation as well as the Hong (Red) River region.

"This is an event that marks the maturity and development of Viet Nam's bridge construction sector," Hai said.

He instructed the capital to begin the second construction phase.

The bridge, which opened for public use last September, is one of seven Hong (Red) River crossings, which will help ease congestion in the capital. It will also reduce traffic flow and contribute to the completion of the city's Ring Road No 2.

The bridge has four lanes for traffic. About 34,000 vehicles now can cross the bridge and approximately 72,000 vehicles per day will be able to use the structure by 2020. — VNS

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Construction price index fails to reflect market fluctuations

HA NOI — Construction firms are complaining that they are being put at a disadvantage by the Ministry of Construction because its quarterly price reports do not reflect monthly market movements.

The issue was raised during a seminar organised by the ministry this week.

Those at the meeting said the ministry should publish its research monthly so that firms could more accurately assess their costs and charges.

Lam Van Hoang, from the Ministry of Transport's Project Management Unit No2, said quotes were based on projected figures, which themselves were calculated on official price-fluctuation forecasts. Because of monthly market fluctuations, particularly during the 2004-08 period, construction firms say they have been losing out.

Wang Gui Jun, of Ha Noi-based China State Construction Engineering Corporation, said it was virtually meaningless to publish the construction price index on a quarterly basis.

The time between purchasing and the publication of the price index could be very significant, Wang said.

He added that the price index should protect the interest of contractors.

Ngo The Vinh, from the Institute of Construction Economy, said steel prices had risen from VND11-VND16 million ( (US$564-$820,512) per tonne in a 40-day period. Every two or three days the price of steel rose by VND200,000 to VND300,000 per tonne which had a major impact on construction, he said.

To make the index more effective, Tran Dang Luyen, from the Department of Construction Management at the Ministry of Agriculture and Rural Development, said the construction price index needed to be published monthly.

He also said the index should be applied to all 63 provinces and cities instead of 12 regions. — VNS

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CC1 fined VND222 mill. for construction violations

HCMC – HCMC authorities have just imposed an administrative fine of VND222 million on Construction Corporation No. 1 (CC1) for breaching construction rules in a road project linking Thu Thiem Bridge and the East-West Highway.

CC1 as the main contractor of the road project was fined for multiple violations such as using unqualified steel components in construction, employing unqualified supervisors, and failing to buy insurance for its five consultancy packages among others, according to a decision issued by the city government.

Besides heavy fines on CC1, the city government has also asked the corporation to promptly repair its violations in accordance with the construction regulations for ensuring the road quality.

Early this week, the Ministry of Transport also announced the administrative penalty decision on CC1.

The road linking Thu Thiem Bridge and the East-West Highway stretches 900 meters with a width of 25 meters. Construction on the project started early this year and has neared completion by now.

However, vehicles could hardly travel through the linking road because the construction of a road section on the East-West Highway has not yet been finished, according to an official of the city’s Department of Transport.

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Highrise building ban casts pall over apartment market

HA NOI — Sales of older high-rise apartments remain sluggish in Ha Noi, with buyers shopping carefully to avoid possible losses in the face of an outstanding Government decision issued in 2007 to require all older apartment blocks in the capital city to be rebuilt.

Since then, the prices of older apartment units in four districts , including Hai Ba Trung, Dong Da, Ba Dinh and Cau Giay, have increased sharply, to an average of VND20-40 million (US$1,050-2,100) per square metre, according to Northern Green Land Real Estate and Services Company.

Older units on Nguyen Cong Tru Street, one of the city's hottest addresses, were averaging as high as VND60 million ($3,160) per square metre.

However, prices receded in the face of a Government decision last December to ban high-rise construction, a move which aimed to protect architectural values and social and technical infrastructure in a part of the city that is home to many historically and culturally significant buildings.

The ban temporarily halted 223 ongoing high-rise construction projects in the four central districts of Hoan Kiem, Hai Ba Trung, Ba Dinh and Dong Da.

While the ban was lifted in July this year, construction continues to be barred in the Ba Dinh political centre, Old Quarter and Ho Guom Lake, Old Citadel and Army areas.

And the lasting effect of the ban has been a chilling effect on the market for older units, with many real estate brokerages suffering the consquences.

BDS Real Estate Co director Le Xuan Truong was still advising clients and investors to be very careful when considering this market.

It would be difficult to see this market reviving since it was under a constant threat of new Government regulation, agreed Hoa Phat Land Co general director Pham Trung Ha. The city would continue to control closely older units while tightly regulating new construction, he said.

Once new construction commenced to replace more of the older buildings, more delays would occur as current owners and new builders negotiated compensation, Ha added.

"If the projects are located in licensed areas and the investors have pledged to implement the projects as scheduled, these projects could still be highly profitable market," said Ha. — VNS

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