In the afternoon of September 29th, 2019, the People's Committee of Lang Son Province and the Investor: Bac Giang - Lang Son BOT Joint Stock Company, a member of Deo Ca Group, held the "Bac Giang - Lang Son Expressway inauguration ceremony (Bac Giang - Chi Lang section)” which is about nearly 64km long and 25m wide, including 4 lanes and 2 emergency stopping lanes with a design speed of 100 km/h after more than 2 years of construction.
Attending the inauguration ceremony of Bac Giang - Lang Son expressway, there were Deputy Prime Minister Trinh Dinh Dung, leaders of ministries and localities of Bac Giang, Cao Bang, Bac Ninh, Phu Yen, Tien Giang ...
Deputy Prime Minister Trinh Dinh Dung speaks at the ceremony
Bac Giang - Lang Son Expressway Project (Project) was agreed by the Government to invest in the Document No. 2167/TTg-KTN dated October 30th, 2014 and the Ministry of Transport (MOT) approved the investment by Decision No. 1249/QD-BGTVT dated April 9th, 2015 which will be implemented by BOT Bac Giang - Lang Son Joint Stock Company, including 02 components: National Highway 1 (strengthening road surface of QL1, at Km1 + 800 - Km106 + 500) with a total length of about 110km; and Expressway (Bac Giang - Lang Son expressway, at Km45 + 100 - Km108 + 500). The total investment of the whole project is 12,189 billion VND.
The project was started in 2015, but due to weakness in resources and management capacity of investors at that time, it was delayed for nearly 2 years (until June 2017, QL1 component reached only 13% of construction output and fails to implement highway component). The head of the investor at that time, Mr. Nguyen Van Duong (a member of UDIC Company) was charged under penal code for organizing gambling with high-tech. Thus, the project fell into a complete stagnation, many contractors stood on the brink of insolvency because they had advanced hundreds of billion VND to implement the Project. As the debts increases beyond control, some contractors have thought to seek death because they “do not see a way out of the depression”.
Mr. Ho Minh Hoang, Chairman of Deo Ca Group speaks at the ceremony
In June 2017, based on report of the Ministry of Transport, a new investor of Deo Ca Group was invited to propose solutions to implement and resolve the project problems: Adjustment, arrangement of public services, handling credit and finance, eliminating unqualified contractors, disbursing to several contractors turning them “coming back to life”.
While engaging in the Project, Deo Ca Group has been affected by many problems and consequences from the former investor. Among which, Trial Council of the Supreme People's Court in Hanoi proposed: “Phu Tho provincial police to continue the investigation and clarify phase 2 of the case against Deo Ca Group Joint Stock Company; Khu Dong Real Estate Investment and Trading Company Limited; Saigon Anpha Real Estate Trading Floor Co., Ltd relating to money laundering behavior of Nguyen Van Duong (Chairman of UDIC's Board of Directors), if there is any violation, it shall be handled in accordance with the law”.
The said proposal has directly affected on the Company and project activities, because reports on media had caused the confusion and anxiety among social opinions, strategic partners, contractors, investors, and shareholders, and directly affected to the prestige and the name brand of new investor. Simultaneously, the above information has caused a lot of difficulties for investor in contacting and executing commitments with the Government, the Ministry of Transport, and other relevant localities ... to accelerate Bac Giang - Lang Son Expressway Project, ensuring the “completion on target” in 2019; At the same time, Deo Ca Group must participate in approaching and handling existing problems at Trung Luong - My Thuan Expressway Project.
On March 14th, 2019, in Document No. 41/CAT-ANĐT, Police’s Investigation Security Agency of Phu Tho Province and the Phu Tho provincial People’s Procuracy has conducted investigation and determined that: “Deo Ca Group Joint Stock Company is not involved in the money laundering act of Nguyen Van Duong” which thereby prevents untrue information as mentioned above promptly.
The project implemented by the State Audit Office of Vietnam has concluded in the Notice No. 420/KTNN-TH dated August 30th, 2017: "Sequence and procedures for selecting Investors, investor capacity and negotiation on the project contract is basically implemented according to the provisions of Decree No. 15/2015/ND-CP of February 14, 2015 on investment in the form of public-private partnership".
After more than 2 years facing many difficulties with the aim of controlling total investment capital of the Project to reduce cost close to the reality, at the sprint time, some contractors exposed its limited capacity and abandoned without finishing the work as contracted, however, with much experience in handling common problems in previous projects, the investor has directed highly qualified contractors to rescue the project and now it is completed building trust for the people.
More than 1 year ago - Since March 2018, National Highway 1 component was completed and put into use which has improved transport capacity, reduce traffic accidents, ensure traffic safety on QL1 for the distance through Bac Giang and Lang Son provinces. Until now, the expressway component has been completed, which not only fills the gaps in the implementation delayed more than 2 years ago but also complete earlier than the plan approved by the Ministry of Transport and pierce the stagnation of the projects in Vietnam so far when no project could be completed prior to 5 years, and Bac Giang - Lang Son highway project completed in just over 2 years is a feat!
Thanks to the concern and support of local authorities, the support of the people of Bac Giang and Lang Son provinces in implementing site clearance, the project was "completed" successfully. It brings a new expectation for a modern road catering the people and plays an important role motivating the socio-economic development for not only Lang Son, Bac Giang as well as affirms the capacity and experience of domestic contractors and investors when there is coordination of the competent authorities addressing project's problems relating to quality and progress in a timely manner.
Ribbon cutting ceremony of Bac Giang - Lang Son expressway (Bac Giang - Chi Lang section)
However, the distance of 30km to Lang Son city will be a knot which must be subdued in the near future in order to open the door of the future road in the Northeast of the country, evolving investment opportunities to continue construction of Huu Nghi - Chi Lang road in Lang Son province. Currently, Huu Nghi - Chi Lang expressway has ensured adequate legal basis and also increases investment efficiency due to optimized investment reducing total investment by divergence solution. However, this project has not been implemented as yet because it has not determined the funding from involved parties which will continue to affect the implementation of Dong Dang - Tra Linh highway connecting Lang Son province with Cao Bang province.
The highway from Hanoi to Bac Giang, Lang Son and Cao Bang should be considered for early completion because it is the premise for the open door of trade between Vietnam - ASEAN countries, creating a boost in socio-economic development, security and defense cooperation, affirming territorial sovereignty and proving the integration capacity of Vietnam to contribute to economic development for the community of countries in the region.
