Japan firm seeks compensation for delayed Vietnam bridge project

TN News

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Construction at the Nhat Tan Bridge site, which spans the Red River in Hanoi

A Japanese corporation has demanded VND200 billion (US$9.56 million) in compensation from Hanoi authorities after the capital city delayed one of the company's projects.

Speaking at a meeting with the Hanoi's People's Committee on Wednesday, Deputy Transport Minister Nguyen Hong Truong said the ministry planned to offer some compensation to the Tokyu Corporation, VnExpress reported.

Truong said the exact amount of compensation would be "seriously "calculated by related agencies before a number is announced.

The Japanese firm had been contracted to build a road leading up to the capital's upcoming Nhat Tan Bridge, which will span the Red River. But local authorities were slow to move residents out of the project's way and the company said the delays cost it money.

Truong said that when the compensation claim was first filed, the ministry told the Japanese embassy in Vietnam that it was unprecedented to pay compensation for late site clearance in Vietnam.

"However, the contractor has filed the claim, so we have to step in. If the case is brought to trial, they [the Japanese company] are more on the right side," said Truong.

According to VnExpress, Tokyu began working on the project in Dong Anh District in March, 2009.

It was asked to complete construction in February 2012, but not until 2011-mid did the company receive enough land from Hanoi authorities in charge of site clearance.

Currently, the contractor has finished some 60 percent of its work.

Slated to be the seventh bridge crossing the Red River in Hanoi, Nhat Tan was scheduled for completion in October 2014.

But only between 30-60 percent of contract work has been completed due to the delayed site clearance, the news report said.

The bridge project is funded with an investment of VND13.6 trillion ($650.55 million) from the Japan International Corporation Agency and the Vietnamese government.

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