Many bid packages with "super low" savings rates are invested by Tay Ho Power Company.

In recent years, in localities, in the bidding work of construction investment projects using state budget capital, functional units have always focused on measures to increase the savings rate of bidding packages. In particular, special attention is paid to the stages of preparing, appraising, and approving bidding package estimates and bidding package prices.

However, in reality, there are still some localities where bidding packages have low or "super low" discount rates, leading to insignificant budget savings.

Through practical surveys over many years, many public investment packages invested by Tay Ho Power Company ( Hanoi Power Corporation) often have a very small budget savings rate calculated in "tens of dong", even some packages save at 0 dong.

Specifically, on February 27, 2024, Mr. Nguyen Vu Huy - Director of Tay Ho Power Company signed two decisions approving the results of contractor selection.

In which, package SCL-2024-XL-003 Construction and installation, project: Overhaul of low-voltage distribution cabinets in Phu Thuong and Quang An wards in 2024.

Hanoi Electricity Service Company is the winning bidder, the winning bid price is 1,377,831,375 VND, compared to the estimated bid price of 1,377,831,427 VND, the winning bid price saves 52 VND for the State budget.

Package SCL-2024-XL-004 Construction and installation, project: Overhaul of low-voltage cabinets that do not ensure operation in Phu Thuong ward in 2024.

Hanoi Electricity Service Company won the bid with a price of 1,547,458,179 VND, compared to the estimated bid price of 1,547,458,179 VND, the winning bid price saved 0 VND.

On January 20, 2024, Mr. Nguyen Vu Huy - Director of Tay Ho Electricity Company signed a decision approving the results of contractor selection for package SXKD-2023-MS-086 Procurement of office equipment in 2023.

Duc Minh Technology Joint Stock Company won the bid with a price of 1,163,569,000 VND, compared to the estimated bid price of 1,165,340,000 VND, the winning bid price saved 1,771,000 VND (equivalent to a saving of about 0.1%) for the state budget.

On June 29, 2023, Mr. Nguyen Vu Huy - Director of Tay Ho Power Company signed a decision approving the results of contractor selection for the package DTXD-2023-MS-048 Procurement of materials and equipment for the projects: Construction of new transformer stations in Tay Ho district - phase 1 in 2023; Construction of new transformer stations in Tay Ho district - phase 2 in 2023; Construction of new transformer stations in Tay Ho district - phase 3 in 2023; Construction of new transformer stations in Tay Ho district - phase 4 in 2023; Elimination of 3-head cabinets in Tay Ho district in 2023.

The Smosa - NLXTL joint venture won the bid with a price of 12,848,515,977 VND, compared to the estimated bid price of 12,956,414,871 VND, the winning bid price saved 107,898,894 VND (equivalent to a saving of about 0.8%) for the state budget.

On May 24, 2023, Mr. Nguyen Vu Huy - Director of Tay Ho Power Company signed a decision approving the results of contractor selection for package DTXD-2023-XL-023: Construction and installation, Project "Eliminating 3-head cabinets in Tay Ho district in 2023".

Hanoi Power Construction Investment Joint Stock Company won the bid with a price of VND 2,169,700,622, compared to the estimated bid price of VND 2,326,810,173, the winning bid price saved VND 157,109,551.

On April 25, 2023, Mr. Nguyen Vu Huy - Director of Tay Ho Power Company signed a decision approving the results of contractor selection for the package DTXD-2023-MS-046 Procurement of materials and equipment, projects: Construction of new transformer stations in Tay Ho district - phase 1 in 2023; Construction of new transformer stations in Tay Ho district - phase 2 in 2023; Construction of new transformer stations in Tay Ho district - phase 3 in 2023; Construction of new transformer stations in Tay Ho district - phase 4 in 2023; removal of 3-head cabinets in Tay Ho district in 2023.

Loc Phat - Extex joint venture won the bid with a price of 14,023,047,668 VND, compared to the estimated bid price of 14,023,047,669 VND, the winning bid price saved 1 VND for the state budget.

On March 1, 2023, Mr. Nguyen Vu Huy - Director of Tay Ho Power Company signed a decision approving the results of contractor selection for package SCL-2023-MS-008 Procurement of equipment and materials, works: Overhaul of 24kV RMU cabinets that do not ensure operation in Tay Ho district.

Hanoi Construction, Design and Consulting Investment Company Limited won the bid with a price of VND 2,170,804,808. Compared to the estimated bid price of VND 2,181,093,597, the winning bid price saved VND 10,288,789 (equivalent to a saving of about 0.4%) for the state budget.

Recently, at a number of National Assembly meetings, giving opinions on the Draft Law on Bidding (amended), there were opinions from National Assembly Deputies that not every bidding brings about effective savings for the state budget. Because, in reality, there are cases where there are high-value bidding packages but when the winning bidding results are announced, the discount rate is very low.
In some localities, there is a situation where every time a “familiar” contractor participates, they win, and in these bid packages, the savings rate for the budget is not high. Therefore, it is necessary to review the process, procedures, registration, and organization of bidding to achieve effective savings for the state budget.

Source