Struggling to auction sand from dredging Co Co River

Sand dredged from the Co Co River is gathered along the riverbank near Nguyen Duy Hieu Bridge. Photo: QT

For sale but… no one buys

The implementation of the Emergency Flood Dredging and Anti-Saline Intrusion Project of Co Co River (a component project of the Environmental Development and Urban Infrastructure Project to Respond to Climate Change in Hoi An City) has created a large amount of sand, about 1.3 million cubic meters.

According to the Provincial Traffic Construction Investment Project Management Board, the dredging of the Co Co River section through Hoi An City has been completed by about 64% of the volume, and the section through Dien Ban Town has been completed by about 48%, but the contractor is temporarily suspending construction due to lack of construction space and the storage yards are full of sand.

Since 2022, the Provincial Traffic Construction Investment Project Management Board has twice organized an auction of sand material assets after dredging the Co Co River (in October and November 2022), but no individuals or organizations registered to participate in the auction.

The reason for the failed auction is said to be because the volume of the auction was too large at one time. After winning the auction, the units had to immediately pay nearly 200 billion VND, so the units did not have enough financial capacity and space to store the above amount of sand after winning the auction.

There are also concerns about the transportation route because the road connecting the storage yard to the outside is a small, narrow concrete road, while transporting sand requires large trucks, which can potentially affect the environment, people's lives, traffic safety, etc.

According to the experimental results, this salty sand is not used for construction, but only as a material for filling urban areas and building foundations for some projects. Photo: QT

In addition, through the survey of the Provincial Traffic Construction Investment Project Management Board, the sand material after dredging has many impurities and organic matter. According to the environmental assessment records as well as the material testing results of Asia Consulting and Testing Company Limited, this sand is contaminated with salt and cannot be used for construction (construction sand, plastering sand), and can only be used as a material for filling urban areas and filling foundations for some items of the works.

Meanwhile, in the past, most urban projects in the area were implemented at a slow pace, so the demand for filling materials was not high. Projects that needed to build roadbeds and other structures could not be purchased at auction because the price was too high compared to the price of filling soil announced by the Department of Construction.

Feasibility study

After more than 2 years of implementation, the auction of sand after dredging on Co Co River has not been successful. Meanwhile, this is an urgent requirement to speed up the implementation of the Emergency Flood Dredging and Anti-Saline Intrusion Project on Co Co River; Hoi An City must also ensure the return of the storage area to investors as committed and create revenue for the provincial budget.

In 2023, the Provincial Traffic Construction Investment Project Management Board explained and proposed to approve the adjustment to reduce the starting price from 144 thousand VND/ ^m3 to 119 thousand VND/m3 to continue organizing the auction according to regulations.

However, at that time, the Department of Finance assessed that the determination of the reason for the unsuccessful auction and the proposal to adjust the starting price was unfounded; the information collected by the consulting unit for comparison and estimation of the starting price did not ensure legality, leading to the consulting unit's Valuation Certificate not complying with the Vietnamese Valuation Standards and requested to re-determine the exact reason for the unsuccessful auction and propose the most appropriate solution.

Organizing an auction of sand after dredging on the Co Co River is an urgent requirement to speed up the implementation of the Emergency Flood Dredging and Anti-Saline Intrusion Project on the Co Co River. Photo: QT

According to the conclusion announcement at the recent working session of the Provincial People's Committee on this issue, Vice Chairman of the Provincial People's Committee Ho Quang Buu requested the Provincial Traffic Construction Investment Project Management Board to continue to preside over the organization of the auction of sand after dredging of this project according to the tasks assigned by the Provincial People's Committee.

At the same time, research in the direction of being able to divide the auction volume according to each storage point, or according to lots, selling in many batches to organize the auction to ensure feasibility, and advise the Provincial People's Committee to approve the adjustment, supplement or replace the approved auction plan.

Mr. Nguyen Van Thuong - Deputy Director of the Provincial Traffic Construction Investment Project Management Board said that after two unsuccessful auctions, a new price must now be made.

According to the direction of the Provincial People's Committee, the price consulting unit must re-examine the new price at this time and the board will continue to survey the price before reporting to the Provincial People's Committee for approval.

Source