The project capital has been raised by VND2.55 trillion ($121.4 million) to VND4.4 trillion ($200 million) from the initial figure of just VND1.85 trillion ($84 million). Of the total capital investment, VND1.2 trillion ($54.5 million) has been sourced from the state budget.
According to Deputy PM Truong Hoa Binh, Ha Tinh province People's Committee selected Vung Ang Investment and Development Joint Stock Company to be the project investor which is still lacks experience in such large-scale works.
The project capital has been raised by $121.4 million to $200 million from the initial figure of just $84 million
The Deputy PM added the project also used the state-funded capital of VND1.2 trillion, but, the investor appointed some of its shareholders to be the contractors for the project without the prime minister's approval, which is the serious violation of the country's Law on Bidding.
Under the Deputy PM's instruction, the Government Inspectorate has to report the investigation results about the project before July 31 this year.
The water supply project for Vung Ang Economic Zone was started in 2011 and is slated for completion by the end of this year.
A recent Government Inspectorate investigation also found Ha Tinh Province had violated regulations in approving the lifespan of the Hung Nghiep Formosa Ha Tinh Steel Co.
According to the inspection, Vo Kim Cu, Chairman of the provincial people's committee signed the decision to licence the company at Vung Ang Economic Zone for 70 years, instead of 50 years as regulated in the country’s Law on Investment.
