How big is the consortium that 'got into the final round' of the Long Thanh airport construction contract?

How is Vietur's "health"?

According to VNDirect Securities, after nearly 2 months of bidding, Vietur surpassed 2 other competitors and became the only consortium that met the technical requirements of package 5.10 of the Long Thanh Airport project and will continue to bid for financial capacity assessment in the coming time. Being the only consortium that has advanced to the next round, Vietur is considered to have a great chance of winning this package.

According to VNDirect, the consortium must meet certain conditions regarding financial capacity. For example, the participating contractor's counterpart capital must be VND3,224 billion. The contractor must have a positive net asset value in the most recent fiscal year compared to the time of bidding. The average revenue of the last 5 fiscal years (excluding VAT) must be at least VND19,800 billion.

These criteria are not too big of an obstacle for the Vietur joint venture.

*Bidding packages in Long Thanh Airport project. (Source: ACV, VND)*

Vietur consortium consists of 10 members, led by ICISTAS Industrial and Commercial-Construction Group (Türkiye).

ICISTAS belongs to IC İbrahim Cecen Investment Holding, established in 1969. This unit has a lot of experience in implementing large infrastructure projects such as ports, airports, energy,... in the United Arab Emirates, Russia... including major international airports in Russia, Saudi Arabia, Turkey, Bulgaria...

In this consortium, there are 3 enterprises Newtecons, Ricons and SOL E&C in the ecosystem of Mr. Nguyen Ba Duong, former Chairman of Coteccons.

Newtecons Construction Investment Joint Stock Company was established in 2003. In the past 5 years, this enterprise has recorded continuous revenue growth, even during the pandemic period, reaching 11,000 billion VND in 2022. Newtecons is the general contractor of several large projects such as: Masteri Thao Dien CT5, Asiana Da Nang, The Song, Techcombank Saigon Tower ...

SOL E&C Construction Investment JSC, formerly SMART Materials & Solutions JSC, was established in 2015. SOL E&C introduced Mr. Nguyen Ba Duong as its founding Chairman. In 2022, SOL E&C achieved revenue of more than 4,500 billion VND.

Meanwhile, Ricons Investment - Construction JSC, established in 2004, is chaired by Mr. Nguyen Sy Cong. This enterprise has won bids for many large projects such as: The Manor Central Park 1 and 2 - Hanoi, The River Thu Thiem, Celadon A5 Diamond Brilliant, Imperia Smart City...

Vietur Joint Venture also includes ATAD Steel Structure JSC, specializing in consulting, designing, manufacturing, and assembling high-quality pre-engineered steel buildings and steel structures. ATAD has two modern factories with a total area of 211,000 m2 in Dong Nai and Long An. ATAD has completed more than 3,500 projects in more than 40 countries and territories.

In addition, Vietur also has Vietnam Construction and Import-Export Corporation - Vinaconex (VCG). This enterprise has 20 companies with controlling capital contributions and 11 associated companies, financial investments. Vinaconex has constructed a number of important projects such as: Thang Long Avenue, My Dinh Stadium, Cua Dat Hydropower Irrigation Project, Pha Lai Thermal Power Plant, Hanoi Museum, Bai Chay Bridge, National Convention Center... Vinaconex and Taisei Group (Japan) once jointly won the international bid for the T2 Terminal project at Noi Bai International Airport.

Along with that is Hanoi Construction Corporation (HAN), which has been assigned to construct and install many important projects of political, military, economic and national defense significance such as Ho Chi Minh Mausoleum, Ho Chi Minh Museum, Ba Dinh Hall, Hanoi Opera House, National Convention Center, International Press Center, Central Party Office, National Assembly House and new Ba Dinh Hall, Ministry of Finance headquarters, Central Children's Hospital, etc.

Another notable name in the consortium is Construction Corporation No. 1 (CC1) with many outstanding construction projects such as: Thu Thiem Bridge, Nghi Son 1 Thermal Power Plant, Ho Chi Minh City Children's Hospital, Vung Ang 2 Thermal Power Plant, Long Son Petrochemical Complex, Nam Dinh Textile Factory, King Crown Infinity Urban Area, Dream City Hung Yen...

Phuc Hung Holdings Construction Joint Stock Company (PHC) is also a member of the consortium. Phuc Hung is the general contractor for many large projects including: Florence Tower, The Zen Residence, IA20, Golden Land Buildings Hanoi and Kenton Node HCMC.

Finally, Hawee Electromechanical JSC, which has constructed a number of electrical and water items of several projects such as Masteri Centrepoint, Wyndham Ocean Dragon Hai Phong, The Metropole Thu Thiem, InterContinental Phu Quoc, Hyatt Regency Ho Tram Resort and Spa, Hanoi Metro No. 3, Noi Bai T1 cargo terminal expansion, Chubu International Airport (Japan), Rohm Electronics Factory (Philippines), Khao Hefei Factory (China), Kyocera Taiwan Factory (China)...

Scale of bidding packages in Long Thanh Airport project. (Source: ACV, VND)

Beneficiaries

In the materials sector, construction stone enterprises will be the main beneficiaries. According to the Ministry of Transport, the demand for construction stone for the construction of Long Thanh Airport phase 1 is up to 18 million m3, equivalent to 56% of the licensed annual mining capacity of Dong Nai province.

Also in July 2023, package 6.12 - construction of roads connecting Long Thanh airport found a contractor.

Accordingly, the consortium of 6 enterprises including Deo Ca Group (HHV), Thang Long Corporation (TTL), Khang Nguyen Infrastructure Construction Investment JSC, Hoang Long Trading and Construction JSC, 368 Construction JSC, Hoang Long Construction Consulting JSC is the winning bidder, with a value of 2,630 billion VND. These are also the enterprises that benefit from the mega project.

At the meeting of the State Steering Committee for important national projects and works, key to the Transport sector on July 13, the Prime Minister directed that the construction of the passenger terminal at Long Thanh Airport must begin in August 2023.

Regarding the site clearance situation, according to the Chairman of the People's Committee of Long Thanh district (Dong Nai province), by the end of July 2023, the site clearance work at the Long Thanh airport project phase 1 was 100% completed (2,532 hectares).

Vietnam Airports Corporation (ACV), the investor of Long Thanh Airport project, has just announced that Vietur Joint Venture has met the technical requirements for the construction and installation package of passenger terminal equipment worth up to 35,000 billion VND.

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