Deputy PM demands scrutiny over Long Thanh Airport bid

A twist in the tale of the multi-billion-dollar Long Thanh Airport project tendering process saw the Hoa Lu consortium, led by Coteccons, raise objections last week against the Vietur consortium - recently announced as the only bidder to meet technical requirements for the VND35 trillion ($1.46 billion) contract.

Hoa Lu has alleged that the leading member of the Vietur consortium breached bidding regulations and did not meet the standards required to fulfil the technical aspects of the contract, known as the 5.10 Package.

The consortium has appealed for a review of Announcement 3146, stating, "We lodged a complaint with the Airports Corporation of Vietnam (ACV), but it has not yet been considered."

According to baodautu.vn, the Government Office has just issued an official letter to the ACV; the Commission for the Management of State Capital at Enterprises; the Ministry of Transport; and the Ministry of Planning and Investment about the petition of the Hoa Lu consortium regarding its qualifications to participate in the bidding for the 5.10 Package, the first stage of the Long Thanh International Airport project.

In response to the petition from the Hoa Lu consortium, DPM Ha tasked those same bodies with the review and resolution of the petition in accordance with legal regulations on August 6.

Hoa Lu insists that its proposal fully met the technical requirements of the tender document, however, on August 1, the consortium was informed that the only contractor to meet the technical requirements of the bid was Vietur, led by IC Holdings from Turkey.

The consortium specified that IC Holdings, or IC Ibrahim Cecen Yatirim Holdings, is named after the company's chairman. He is considered one of the five major construction tycoons in Turkey. This is the first time IC Holdings has entered Vietnam, and it has no previous experience with Vietnamese laws or construction regulations, nor a clear track record.

The Hoa Lu consortium has been established by seven domestic contractors and one Thai contractor, and consists of Unicons, Thanh An, Delta, Central, An Phong, Hoa Binh and Power Line Engineering, with Coteccons leading the consortium.

The Vietur consortium includes ten enterprises, led by IC Istas Industry and Trade Construction Group from Turkey. The remaining members include Ricons, Newtecons, Vinaconex, Phuc Hung Holdings, and Hanoi Construction Corporation, among others.

Profit potential for winning bid at Long Thanh Airport project Amidst a downturn in the private real estate market, Package 5.10 of Vietnam's Long Thanh International Airport has emerged as a financial lifeline for domestic and international contractors, potentially generating a net profit of up to VND1 trillion ($41.67 million) for the winning bidder.