Vietnam transport ministry cancels int'l bidding for national expressway project

Thứ Tư, 02/10/2019 - 02:00

Changing the procurement method to domestic bidding would help “ensure national security and enhance capacity of Vietnamese enterprises in fields of infrastructure development,” said the Ministry of Transport.

Vietnam’s Ministry of Transport (MoT) has canceled the result of preliminary international bidding process for eight sub-component projects of the Eastern North-South expressway project under the public-private partnership (PPP) format, and adjusted the process to domestic bidding, VnExpress reported.

Illustrative photo.

According to the MoT, as of the end of July, two months since the issuance of bidding documents, the MoT’s project management units have received 60 proposals.

The evaluation of these proposals showed no one was qualified for preliminary process in four sub-component projects; only one proposal in each of two projects; one project with over two proposals and one with over three proposals qualified for preliminary evaluation.

“As a result, the number of bidders qualifying for preliminary qualification is low, leading to low competitiveness of the tender,” said the MoT in a statement.

Under this circumstance, the MoT has decided to cancel the result of preliminary qualification process under the form of international bidding, and opts for opening new domestic bidding process for all eight sub-component projects.

This would help “ensure national security and enhance capacity of Vietnamese enterprises in fields of infrastructure development,” added the MoT.

Previously, the MoT’s project management units informed among 60 proposals, Chinese contractors make up the majority with 30 (under the form of joint-venture or single entity) and submitted proposals in all eight sub-component projects, the other 15 proposals are from investors of South Korea, France and the Philippines, and the remaining 15 from Vietnamese enterprises.

No investors from Japan and European countries submitted proposals for the projects.

The Eastern North-South expressway project is of national priority for investment in the 2017 – 2020 period, includes 11 sub-projects with total length of 654 kilometers running through 13 provinces and cities, of which three will be financed by state budget and eight under the public private partnership (PPP) and build-operate-transfer (BOT) arrangements.

The 11 projects are estimated to cost a total of VND118 trillion (US$5.04 billion), including VND55 trillion (US$2.35 billion) in state capital to be pumped into three public investment projects, and counterpart funds for the other eight projects.

The eight projects include sections from Cao Bo (Nam Dinh province) to Bai Vot (Ha Tinh province); Cam Lo (Quang Tri) to La Son (Hue); Nha Trang (Khanh Hoa) to Dau Giay (Dong Nai); My Thuan 2 bridge (Tien Giang and Vinh Long).

Three public investment projects are Cao Bo (Nam Dinh) – Mai Son (Ninh Binh), Cam Lo (Quang Tri) – La Son (Thua Thien - Hue), and My Thuan 2 bridge (Tien Giang – Vinh Long).

On September 16, Prime Minister Nguyen Xuan Phuc ordered the start of construction of the Cam Lo – La Son section, the first out of 11 sub-projects under the Eastern North-South expressway project.

Phuc stressed the strategic importance of the project in economic development and raising people’s living standard. As of present, over 1,000 kilometers of expressway have been built throughout the country, Phuc added, saying an additional of 900 kilometers would be completed by end-2021.

In the 2021 – 2025 period, Vietnam targets to have at least 2,000 kilometers of expressway and by 2025, the figure would be 4,000 kilometers stretching from northern province of Lang Son to the southernmost province of Ca Mau, Phuc continued.

Including the Eastern North-South expressway, Vietnam would have four major transportation routes across the country, including National Route No.1, Ho Chi Minh highway, and coastal highway.

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