Violations found at elevated railway project in Hanoi

The inspection was carried out following a complaint by Luong Xuan Binh, former deputy head of the Hanoi Urban Railway Management Board.

The inspectorate found grounds for a lot of the issues Binh raised.

The project is developed by Hanoi Urban Railway Management Board. French consultancy firm Systra was hired for 10.6 million euros in November 2007.

There were many shortcomings in the beginning and the contract contains a lot of ambiguous contents that can be interpreted differently by both parties.

The GI said although the project is complex and large with the application of new technologies and standards, the contract only defines a period of 25 months with a total value of 10.6 million euros. It is not feasible, failing to meet the project's requirements.

Three appendices later were signed and the total consulting rate increased to 17.1 million euros.

The adjustment of the contract value was attributed to slow progress in performing the tasks of Systra, causing costs to rise, the GI said.

During negotiation for the adjustment of the consulting contract, the investor did not clarify the responsibility of Systra in the project’s delay to determine the expenditure and reducing cost when calculating an additional estimate cost.

Regarding the bidding package for unexploded ordnance and mine clearance by the Lung Lo Construction Company, violations were also found in the evaluation and payment process.

The monitoring work was lax and reports were not up to quality standards. It also failed to comply with the approved plans. The GI said the Engineering High Command, the Lung Lo Construction Company and the unit who carry out the bidding package should be held accountable.

The inspectorate suggested the Ministry of Defence review responsibilities in member agencies over the bidding package.

Violations have also been detected relating the selection of contractors for bidding package No 3, the tunnel and underground stations, according to the GI.

The contractor and the Hanoi Urban Railway Management Board signed a contract to implement package 3 when site clearance for construction was not completed. Currently, planning for stations No 9, 10 and 11 is being adjusted, resulting in the fact that land designated for the project couldn’t be handed over to the contractor.

The inspectorate said that the delay in handing over the site led the contractor to adjust the implementation plan and require additional funding of about US$40 million, causing damage to the State budget.

The project has a total length of 12.5km, with an 8.5km elevated track and a 4km underground track. The initial cost was estimated at US$911 million, but that has risen to VND1.3 billion.

The project, which kicked off in September 2010, was scheduled to be completed in September 2017 but has had problems with land clearance, so the city People’s Committee extended the project deadline to 2022.

The 8.5km elevated section is planned to be finished in April 2021, with the remaining 4km underground line to be opened in December 2022.

The urban railway line No 3, connecting Nhon area and Hanoi Station, will run through Nam Tu Liem, Bac Tu Liem, Cau Giay, Ba Dinh, Dong Da and Hoan Kiem districts.