The public is angry as projects are delayed due to staff shortages and price hikes

This week we reported that the international consultants who were working on the new HCMC Metro have quit.

The project's investor, the Ho Chi Minh City Management Authority for Urban Railways (MAUR), is working on bidding procedures to choose a new consultant for the line after the former one quit, the city administration reported to the Ministry of Planning and Investment on Monday.

The former consultant, a consortium of three German companies and a Swiss and Vietnamese firm, ended the independent consultant (IC) agreement contract with the MAUR in March after both sides failed to agree on an appendix for renewal.

Reading between the lines with rising costs affected by wages, materials, and staff shortages has made agreements that seem fair and workable back in 2012 when the agreement was signed now unrealistic.

All over SE Asia

This is being echoed around SE Asia as contractors are dumping construction contracts by just downing tools.

The fact that many low-paid workers have not returned from their home countries has added to the problem and has caused costly delays.

file photo

When town hall officials receive complaints from traders and the public that a certain road project has stopped with half-built roads causing traffic jams, there is little they can do except either give out a new contract or pay more funds.

It is becoming a catch-22 situation for many local governments who are already trying to balance city budgets hit by the pandemic.

Join our 3 x a week Philippines News, Travel and Expat information newsletter and keep up to date. https://aseannow.com/newsletter.php