Vietnam Road Administration was sued in court

A business in Hanoi has filed an administrative lawsuit against the Vietnam Road Administration in court over the decision of this unit.

Xuan Cau Company Limited filed an administrative lawsuit against Decision No. 388/QD-TCDBVN dated March 22, 2013 of the Director General of the Vietnam Road Administration on the cancellation of the result of appointing the Investor to implement the project of building Phuoc Tuong and Phu Gia road tunnels, National Highway 1A, Thua Thien Hue province under the BOT form for Xuan Cau Company Limited.

The project to build the Phuoc Tuong – Phu Gia road tunnel, National Highway 1A, Thua Thien Hue province under the BOT form was approved by the Minister of Transport. Subsequently, the Minister of Transport issued a decision to authorize the Directorate for Roads of Vietnam to sign and implement the project contract.

In carrying out the authorization, the Director General of the Vietnam Road Administration issued Decision No. 1503/QD-TCDBVN approving the results of appointing Xuan Cau Company Limited as the investor to implement the project with a total proposed investment capital of more than 1,300 billion VND, construction progress within 18 months, break-even toll collection period of nearly 18 years, toll collection period to generate profit of over 1 year...

Since September 2012, many meetings and negotiations on the BOT project contract have taken place between Xuan Cau Company and authorized representatives (including the Ministry of Transport, Vietnam Road Administration, etc.).

During the working sessions with the Ministry of Transport and its agencies, Xuan Cau Company reported on the overall progress of the work that the company had implemented as well as the coordination process with the Vietnam Road Administration (including agreed and disagreed points).

At the end of December 2012, the Office of the Ministry of Transport held a meeting on the progress of the implementation of the National Highway 1A investment projects from Hanoi to Can Tho. At this meeting, a notice was issued on the policy of "agreeing to terminate the negotiation of the project contract with the investor Xuan Cau Company Limited", and at the same time, directing the Directorate of Roads of Vietnam to complete the procedures to terminate the negotiation with Xuan Cau Company Limited.

After the meeting, the Vietnam Road Administration issued a memorandum concluding that the negotiations were unsuccessful and requested Xuan Cau Company to work with the bidding parties to receive the return of the bid security letter.

At the same time, in early 2013, the Director General of the Vietnam Road Administration issued Decision No. 388 to cancel the results of the bidding for the investor to implement the project with Xuan Cau Company.

Xuan Cau Company filed an administrative complaint because it disagreed with the procedure for canceling the results of the bidding, disagreed with the Ministry of Transport starting the construction of the Phuoc Tuong - Phu Gia road tunnel project, National Highway 1A, Thua Thien Hue province with the joint venture investor Hung Phat Company Limited while Xuan Cau and the Ministry of Transport had not completed the procedures for canceling the results of the investor appointment...

The case is currently being handled by Hanoi People's Court./.

According to VOV.VN