PMU sets strict requirements to exclude domestic contractors

The Hanoi Urban Railway Project Management Unit (PMU) has been criticized for deliberately having set up overly strict requirements on contractors which aim to exclude domestic contractors.

A lot of domestic contractors hoped that they would get the chance to implement the project on building overhead platforms, which are a part of the pilot urban railway route in Hanoi. However, they have realized that they would fail to become the contractors of the project because of the unreasonably high requirements set on contractors.

PMU want to block domestic contractors’ way?

On June 23, 2011, the Hanoi Urban Railway Project Management Unit released the invitations to attend the short-listing round of the international bid for the second construction and installation package. This is the package of building overhead platforms belonging to the pilot urban railway project.

In order to be eligible for attending the bid, contractors need to meet a lot of requirements set by the PMU. Especially, they must have got worked, as general contractors or sub-contractors, in at least two contracts in the last five years. Each of the contractors must have the minimum value of 40 million euros or 1080 billion dong. The projects must have been basically completed, and they must be similar to the above said project. The similarities will be defined based on the complexity, the measures of execution, technologies or other characteristics.

A lot of domestic contractors smiled sadly after reading the information about the international bidding package, because they understand that by setting up strict requirements, the investor wants to exclude domestic contractors.

No one can understand why domestic contractors are not welcomed at the construction and installation package, which is considered a simple package and the implementation is absolutely within the reach of domestic contractors.

An expert who asked to be anonymous, has affirmed that the second package is in no way complicated and the execution does not require high technologies. He has also affirmed that Vietnamese enterprises have sufficient experiences in implementing such civil building works.

The expert has pointed out that the PMU has been too demanding while requiring contractors to implement at least two similar construction works in the past. To date, no overhead platform has been built in Vietnam; therefore, it would be unreasonable to require contractors to have experiences in the field.

In fact, each of the eight platforms has the value of 135 billion dong, not a high level. Therefore, domestic contractors are financially capable enough to undertake the project. However, the PMU has put difficulties for domestic contractors by adding up the values of all platforms.

It is clear that by setting overly strict requirements, the PMU wants to keep domestic contractors away, while paving the way for foreign contractors.

Domestic contractors must be given priority

A contractor said that the PMU clearly does not intend to choose domestic contractors when they set up too strict requirements in the conditions of Vietnam, where there are very few civil construction works worth more than one trillion dong in the difficult period.

He has predicted that a foreign contractor would win the bid and they would hire Vietnamese sub-contractors.

A leader of the project management unit told Lao Dong that he does not think that too high requirements should be set up for the short-listing round, so as to create favorable conditions for domestic contractors to join the bids. If so, the investors will have more choices.

According to him, setting such strict requirements for a simple work is just like applying the standards of beauty queens when seeking home helpers.

Meanwhile, on May 17, 2011, the Prime Minister released the Instruction No 734 on reorganizing the management work at EPC contracts, clearly stipulating that there should be the mechanism which allows to create favorable conditions for domestic contractors to undertake the works within their capability. – Vietnamnet