Bridge repair in Hanoi, many billion-dollar contracts only save a few million

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Studying the bidding process for the construction and repair of several bridges in Hanoi, reporters discovered that many bid packages had low competition rates and limited savings.

Many bid packages have only one contractor participating.

In the previous article, Lao Dong Newspaper reported that 7 bridges in Hanoi showed signs of deterioration despite not having been tendered for repairs for long. They are Kim Nguu - Den Lu bridge, in Hoang Mai district; Yen So bridge (Hoai Duc district), 3 bridges in Dong Anh: Viet Thang, Kenh Giua, Kim Chung overpass and 2 bridges on Ho Chi Minh road: Khe Hang and Vai Reo.

Currently, the competent authorities, the Hanoi Department of Transport and the Traffic Infrastructure Maintenance Board, have yet to make an official response. According to the reporter's investigation, there are details in the bidding process for repairing these bridges that need to be clarified.

It is known that bridge repair and construction is a regular construction package, but for all 7 packages, when the Traffic Infrastructure Maintenance Board invited bids, only 1 to 2 contractors participated.

Details as follows:

The entire construction and traffic safety package of the Khe Hang Bridge repair project at Km418+629 Ho Chi Minh Road (hereinafter referred to as the Khe Hang Bridge repair package). The package was invited on September 22, 2023. As of October 2, 2023, when the package was opened, there was only one participating contractor, the Joint Venture of Tin Thinh Investment and Construction Joint Stock Company and VSBCO Vietnam Joint Stock Company.

Lien danh Cong ty Co phan Dau tu va Xay dung Tin Thinh va Cong ty Co phan VSBCO Viet Nam trung goi thau sua chua cau Khe Hang. Anh: Phong vien
The consortium of Tin Thinh Investment and Construction Joint Stock Company and VSBCO Vietnam Joint Stock Company won the bid to repair Khe Hang Bridge. Photo: Reporter

Bidding package for the entire construction and traffic safety part of the Yen So bridge repair project on Highway 422 (old 79), Hoai Duc district (hereinafter referred to as the Yen So bridge repair package). The bidding package was invited on August 20, 2022. On August 29, 2022, when the bidding package was opened, there was only 1 participating contractor, VSBCO Vietnam Joint Stock Company.

Bidding package for the entire construction and traffic safety assurance part of the Viet Thang Bridge repair project (hereinafter referred to as the Viet Thang Bridge repair package). The bidding package was invited on August 22, 2022. On September 1, 2022, when the bidding was opened, there was only 1 participating contractor, the Joint Venture of Tin Thinh Investment and Construction Joint Stock Company and Kien Hung Consulting and Construction Joint Stock Company.

The remaining bid packages also have only 2 participating contractors.

The entire construction and traffic safety package of the Vai Reo Bridge repair project, Km411+446 Ho Chi Minh Road (hereinafter referred to as the Vai Reo Bridge repair package). This package was invited for bid on September 22, 2023. The bid opening date is October 2, 2023 with 2 participating units: VSBCO Vietnam Joint Stock Company and Sumen Viet Nhat Joint Stock Company.

The bid package for the entire construction and traffic safety assurance part of the Kim Nguu - Den Lu bridge repair project, Tam Trinh bridge support, Hoang Mai district, (hereinafter referred to as the Kim Nguu - Den Lu bridge repair package) was invited for bid on June 28, 2022. This bid package was opened on July 8, 2022. At the time of bid opening, there were 2 participating contractors: Tin Thinh Investment and Construction Joint Stock Company and Thang Long Bridge 11 Construction and Repair Joint Stock Company.

Theo phan anh cua nguoi dan, cay cau Kim Nguu - Den Lu moi duoc sua chua nhung da xuong cap tram trong. Anh: Phong vien
According to local residents, the Kim Nguu - Den Lu bridge shows signs of deterioration. Photo: Reporter

Bidding package for the entire construction and traffic safety part of the Kenh Giua Bridge repair project (hereinafter referred to as the Kenh Giua Bridge repair package). The bidding package was invited on August 22, 2022. The bidding package was opened on September 1, 2022, with 2 participating contractors: Sumen Viet Nhat Joint Stock Company and the consortium of Tin Thinh Investment and Construction Joint Stock Company - Kien Hung Consulting and Construction Joint Stock Company.

The entire construction and traffic safety package of the Kim Chung Bridge repair project (hereinafter referred to as the Kim Chung Bridge repair package). The package was invited on June 28, 2022. On July 8, 2022, when the bid was opened, there were 2 participating contractors: Sumen Viet Nhat Joint Stock Company and Thanh Nam Traffic Construction and Investment Company Limited.

Billion dollar package saves several million

Not only 1 or 2 contractors participated, many packages won at close price, saving the budget only a few million VND. In particular, packages with only 1 contractor participated had very low savings rates.

That is the Khe Hang Bridge repair package at Km418+629 Ho Chi Minh Road. The estimated price of the package is 4,759,018,000 VND. The winning bidder is the consortium of Tin Thinh Investment and Construction Joint Stock Company and VSBCO Vietnam Joint Stock Company with the price of 4,751,420,000 VND. That means for this package of more than 4.7 billion, the unit only saved nearly 7.6 million VND, equivalent to (0.15%).

The package for repairing Yen So bridge has a package price of 2,144,299,000 VND. VSBCO Vietnam Joint Stock Company won the bid with a price of 2,140,399,000 VND, saving 3.9 million VND (equivalent to 0.2%).

As for the Viet Thang Bridge repair package, the package price is 2,274,701,000 VND, the winning bidder is the joint venture of Tin Thinh Investment and Construction Joint Stock Company and Kien Hung Consulting and Construction Joint Stock Company with the price of 2,267,140,773 VND. That means saving 7.5 million VND (equivalent to 0.3%).

The remaining packages also had a bid saving rate that was not much better. The Kim Nguu - Den Lu bridge repair package, worth 1,606,964,000 VND. Tin Thinh Investment and Construction Joint Stock Company won with a bid of 1,601,359,861 VND, saving only over 5.6 million VND.

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Image of the large bridge on Ring Road 4 in the Capital region under construction

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