MPI intervenes in Long Thanh International Airport bidding dispute

August 15, 2023 | 13:44
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Vietnam's Ministry of Planning and Investment (MPI) has directed the Airports Corporation of Vietnam (ACV) to address proposals from the Hoa Lu consortium related to the Long Thanh International Airport terminal package 5.10, according to Tuoitre.
MPI intervenes in Long Thanh International Airport bidding dispute
MPI intervenes in Long Thanh International Airport bidding dispute, illustration photo

The Bidding Management Department under the MPI has received two successive proposals from the Hoa Lu consortium concerning package number 5.10 – which involves the construction of and equipment installation for the passenger terminal of part three of the Long Thanh International Airport construction project.

The direction follows the instructions of Deputy Prime Minister Tran Hong Ha, according to Baodautu, stipulating that resolutions and processes regarding contractor selection issues are detailed under articles 91 and 92 of the Bidding Law.

Previously, baodautu.vn reported that the Government Office has 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 by the Hoa Lu consortium regarding its eligibility to participate in the bidding for the 5.10 Package.

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

According to the same law, the ACV has been advised to review the content proposed by the Hoa Lu consortium and address it accordingly to avoid any delays in the project timeline.

The Bidding Law dictates that the project owner, in this case the ACV, is obligated to respond to the Hoa Lu consortium within seven working days. If the consortium disagrees with ACV's decision, they are entitled to send a recommendation to the appropriate authority within the following five working days.

The ACV's public announcement of the chosen contractor for package 5.10 would allow Hoa Lu, if they feel their interests have been compromised, to further appeal to the project owner or initiate legal proceedings.

Are Hoa Lu and the ACV at loggerheads?

The Hoa Lu consortium was established by seven domestic contractors and one from Thailand, and consists of Unicons, Thanh An, Delta, Central, An Phong, Hoa Binh, and Power Line Engineering, with Coteccons leading the group.

In their written proposal to multiple governmental bodies and high-ranking officials, the consortium asserts that Vietur consortium – the only entity chosen by the ACV to pass the technical round for package 5.10 – has violated bidding regulations and lacks the technical ability to meet the package's requirements.

Consequently, Hoa Lu consortium is urging for a review of the ACV's announcement 3146 dated August 1 regarding Vietur consortium's technical compliance.

The Hoa Lu consortium, along with the Vietur and China Harbour Engineering Company consortiums, had cleared the preliminary selection for package 5.10, indicating their initial technical compliance.

However, the ACV, in recent correspondences, has insisted they are assessing bidding profiles correctly and fairly. Based on the documentation submitted by the participating contractors on June 12, the ACV claims to have evaluated the technical proposals against the set criteria and standards in the bidding profile, while ensuring fairness for all bidders.

Deputy PM demands scrutiny over Long Thanh Airport bid Deputy PM demands scrutiny over Long Thanh Airport bid

The Hoa Lu consortium, spearheaded by Coteccons, has lodged a complaint against the Vietur consortium over a VND35 trillion ($1.46 billion) package at Long Thanh International Airport, citing violations of bidding regulations. Responding to the petition, Vietnamese Deputy Prime Minister Tran Hong Ha has ordered a meticulous review of the petition.

By Tri Lam

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