Hanoi water pipeline contract with Chinese firm on hold

Wokers repaire a broken section of the Da River Water pipeline Phase 1. The Hanoi People’s Committee has proposed that the Prime Minister ask the developer of the Dà River Water Project Phase 2 to postpone signing a contract with a Chinese pipe supplier.

The information was released by deputy head of the municipal Party Committee’s Publicity and Education Department, Tran Xuan Ha, during a press meeting yesterday afternoon.

The recommendations were made following a review of the whole project upon a request by the Deputy Prime Minister Nguyen Xuan Phuc.

The People’s Committee also recommended the Government to ask the project developer to soon hire an international consulting firm capable of assessing and verifying the quality of the pipe sample supplied by the contractor.

The project, worth a total investment capital of VND94,922 billion (US$223 million), is implemented by the Vinaconex Water Supply Joint Stock Company (Viwasupco).

The project review was only undertaken after media reports showed public concern of the quality of the water pipes made of ductile iron supplied by the Chinese contractor, Xinxing Corporation.

Viwasupco was assigned to be the main investor of the Da River Water Project Phase 2 in 2010 by the Ministry of Constructions’ Vinaconex Corporation.

Viwasupco opened bids between August 2015 and March 2016 to seek suppliers for the project’s ductile iron water pipelines and spare parts. The pipeline is 21km long and 1.8m in diameter.

On March 21, the company made public the result of the bid. Two days later, the company leaders met with local media to explain about the bidding process following media coverage voicing public concerns.

Concerns have been raised by the public about the quality of the project as well as the choosing of the Chinese contractor as the pipe has broken 17 times since the completion of the first phase in 2009.

Shortly after that, Deputy PM Phuc instructed the city administration to review the whole project and to clarify information relating to the project after concerns by local residents.