Why so much negativity about Chinese contractors?
  • By Bui Hoang Tam | dtinews.vn | March 26, 2016 05:45 PM
 >>  Concerns arise over Chinese contractor for water pipeline project

The public has raised concerns over news that a Chinese company has won a contract to be the pipe supplier of a major clean water project in Hanoi.

Vietnam’s Vinaconex Water Supply JS Company (Viwasupco) said that Tuesday that it had awarded the ductile iron pipe supply contract for Phase II of the Song Da Water Project to Beijing-based Xinxing Co. Ltd.


The second phase of the Song Da Water Project

Xinxing won the contract with a bid 11.8% lower than outlined in the tender, Viwasupco general director Nguyen Van Ton admitted. The developer explained that the Chinese firm’s bid had actually been carefully assessed by two of the project’s consultant firms, and approved by the company’s board of directors.

The second phase of the project is intended to supply clean water to Son Tay, Hoa Lac, Xuan Mai, Mieu Mon and Ha Dong in the capital. The first phase of the project became infamous for repeated pipeline breaks. The latest rupture, the 17th since December 2012, occurred on December 31, 2015, causing water shortages for thousands of Hanoi residents.

Following public concerns, Deputy Prime Minister Nguyen Xuan Phuc urged Hanoi’s authorities to work with with the Ministry of Construction and other agencies to inspect the project's second phase.

It is unsurprising that Vietnamese people raise doubts whenever a Chinese firm wins a bid to implement large-scale infrastructure projects in Vietnam. The reaction is because of a series of problems related their project implementation such as unsafe construction, sluggish construction place, leading to wasted funding, said National Assembly Deputy Bui Thi An.

China Railway Sixth Group as the main contractor on the Cat Linh - Ha Dong urban railway project has seen its costs rise to USD868 million compared to its original estimated bid of USD553 million.

The Vietnam Energy Association has proposed prime minister, state president and National Assembly to restrict hiring Chinese contractors.

From cement projects to electricity plants and urban railway projects which see the participation of Chinese projects have also seen slow implementation, resulting in ballooning costs. So, it is easy to understand the public worry when the Chinese company has won a bid for the second phase of the Song Da Water Project - Phase II.

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