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Coteccons consortium files complaint regarding the 35 trillion VND Long Thanh airport project contract.

VnExpressVnExpress05/08/2023


The Hoa Lu consortium says it has "evidence" that the Vietur consortium does not meet the technical standards, and requests ACV to stop opening the financial bid for the Long Thanh airport project.

In a document sent to leaders and ministries, the Hoa Lu Joint Venture complained to the investor, the Vietnam Airports Corporation (ACV), about the decision that only the Vietur Joint Venture met the technical requirements for the construction and equipment installation package of the Long Thanh airport passenger terminal. This is package 5.10, worth 35,000 billion VND.

The Hoa Lu consortium, led by Coteccons, comprises eight contractors: Hoa Binh , Central, An Phong, Delta, Unicons, Thanh An, and Power Line Engineering (PLE - Thailand). This is the only consortium led by a domestic contractor, and it had previously committed to completing the project by August 2026 if it won the bid.

The Vietur consortium comprises 10 companies, led by IC Istas Construction and Trading Group (part of IC Holdings of Turkey). The remaining members include Ricons, Newtecons, Sol E&C, Construction Corporation No. 1, ATAD, Vinaconex, Phuc Hung Holdings, Hawee Mechanical and Electrical, and Hanoi Construction Corporation. Of these, Ricons, Newtecons, and Sol E&C are three companies within the ecosystem of Mr. Nguyen Ba Duong.

Perspective view of Long Thanh Airport. Photo: ACV

Perspective view of Long Thanh Airport. Photo: ACV

Hoa Lu stated that there is "evidence" showing that the leading member of the Vietur consortium - IC Holdings - violated bidding regulations and did not meet the technical requirements. Firstly, the chairman of IC Holdings, Mr. Ibrahim Cecen, is embroiled in numerous corruption allegations. Secondly, IC Holdings has a history of slow construction on many projects, having had major projects terminated and facing lawsuits against investors. Thirdly, IC Holdings' airport construction experience claims are untrue and show signs of delays.

The complaint states that IC Holdings' website indicates the company built Pulkovo Airport in Russia, Varna Burgas Airport in Bulgaria, and the remaining airports are in its home country of Türkiye. "The consortium lacks experience in constructing international projects, especially in tropical, stormy climates," a representative of the consortium commented.

Regarding the Pulkovo airport project, Hoa Lu stated that IC Holdings is one of two contractors in the consortium. The airport's projected capacity is 17 million passengers by 2025, while IC Holdings claims 20 million passengers. Varna Burgas, on the other hand, is a smaller airport with a capacity of 3 million passengers per year, so Hoa Lu argues that it cannot be compared to Long Thanh airport. Besides these two airports, IC Holdings also claims to have experience building King Khaled Airport in Saudi Arabia, but this project, which started in 2017, remains unfinished.

The consortium led by Coteccons requested ACV to re-evaluate the information published by IC Holdings and asked the Ministry of Public Security to investigate the background of the company's chairman and the corruption allegations reported in the press.

Furthermore, the Hoa Lu group is concerned that selecting a consortium for the financial bid review round could mean that the winning bidder has already been determined by the technical proposal review department. The group argues that ACV's decision risks compromising fair competition in pricing.

With the above complaints, the Hoa Lu Consortium requests that the competent authority consider directing ACV to stop opening the financial documents for package 5.10 and requests a re-verification of the capabilities of the consortiums or invite a third-party independent unit with sufficient capacity and expertise to re-evaluate the technical bid documents of the parties.

A representative from Coteccons stated that the Hoa Lu consortium had filed a complaint with the relevant authorities. "We are exercising our right to appeal in accordance with the Bidding Law and the instructions in the tender documents," the representative said, declining to comment further.

Speaking to VnExpress , an ACV representative said they had not yet received a complaint from the Hoa Lu consortium. The company declined to comment further, stating that "the bidding process is underway, so all information must remain confidential."

According to the law, when a contractor believes their rights and interests have been affected, they have the right to petition the investor and competent authorities to review issues in the contractor selection process. The contractor has the right to request the investor to explain the reasons for not meeting the technical criteria, and to request information on the specific scores for each scoring criterion in the tender documents and bid submissions. Furthermore, the contractor also has the right to request a re-evaluation of the criteria.

The Hoa Lu consortium cited the International Competitive Bidding (ICB) process and argued that, before deciding on technical factors that are deemed ineligible or unclear, the investor must publicly request the bidding company to explain and provide further information to ensure objectivity. The application of ineligible points needs to be considered in accordance with international bidding regulations to avoid potential disputes later from experienced contractors, which could affect project progress.

Previously, ACV representatives stated that they had selected Vietur as the contractor meeting the technical requirements. The Long Thanh airport investor will proceed with the next step, which is evaluating the financial documents on August 4th and completing the process within August.

Tat Dat



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