Two joint ventures of Coteccons and China were eliminated from the 35,000 billion VND bidding package for Long Thanh airport.

VnExpressVnExpress01/08/2023


The Hoa Lu and Chinese consortiums were eliminated because they "did not meet technical requirements" while the Vietur consortium with Mr. Nguyen Ba Duong was allowed to continue.

Today, Vietnam Airports Corporation (ACV) - the investor of Long Thanh airport project - announced that Vietur Joint Venture met the technical requirements for the construction and installation package of passenger terminal equipment (package 5.10 worth VND35,000 billion). This means that the two remaining joint ventures, Hoa Lu and CHEC-BCEG-Vietnam Contractors of China Harbour Engineering, were eliminated from the bidding process for package 5.10.

The Vietur consortium consists of 10 enterprises, led by the Turkish IC Istas Construction and Trade Industry Group. The remaining members include Ricons, Newtecons, Sol E&C, Construction Corporation No. 1, ATAD, Vinaconex, Phuc Hung Holdings, Hawee Electromechanical and Hanoi Construction Corporation. Of which, Ricons, Newtecons and Sol E&C are three enterprises in Mr. Nguyen Ba Duong's ecosystem.

The Hoa Lu consortium, led by Coteccons, includes eight contractors, including 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 has committed to completing the project by August 2026 if it wins the bid.

The remaining consortium is CHEC-BCEG-Vietnam Contractors, consisting of Thuan Viet, CDC, Xuan Mai, Beijing Construction Engineering Group, led by China Harbour Engineering. China Harbour Engineering is one of the leading enterprises in China, often participating in large infrastructure projects assigned by the government.

Speaking to VnExpress , an ACV representative said that currently, only Vietur is selected as the contractor that meets the technical requirements. The investor of Long Thanh airport will take the next step of evaluating the financial documents. "This is not the final result of winning the bid for the Long Thanh airport terminal project," the ACV representative affirmed.

Next, ACV will hold a ceremony to open the financial proposal for the Vietur Joint Venture on August 4. The financial evaluation will take place in August.

Perspective of Long Thanh airport. Photo: ACV

Perspective of Long Thanh airport. Photo: ACV

Package 5.10 - construction and installation of passenger terminal equipment with a total value of more than 35,000 billion VND is the largest item of the Long Thanh Airport project. The first bidding round had only one contractor participating, the Conteccons - Vinaconex - Centra - Phuc Hung Holdings - REE - Hoa Binh - HAWEE consortium. ACV failed to pass the bidding and conducted a second bidding round.

The second bidding had three consortiums participating, including Vietur, Hoa Lu and CHEC-BCEG-Vietnam Contractors. At the same time, ACV asked to postpone the completion date of this airport to 2026.

According to calculations by the analysis team of Ban Viet Securities (VCSC), the maximum total profit for a contractor participating in the 5.10 package is about VND525 billion. This profit level is relatively large compared to the average annual net profit in the period of 2019-2022 of Coteccons (VND264 billion), Hoa Binh Construction (net loss of VND133 billion) and Vinaconex (VND866 billion).

As the estimated construction period for Long Thanh Airport Phase 1 is 39 months (approximately late 2026 or mid-2027 depending on the commencement date), the total estimated profit above will be recorded in the next 3-3.5 years.

Tat Dat - Doan Loan



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