The Xinxing Ductile Iron Pipes Company Limited won the package CCOG-09 (located in Wu An city, Hebei Province, China).
The Package is under the Project of water supply system for Son Tay-Hoa Lac-Xuan Mai-Mieu Mon-Ha Noi-Ha Dong, phase II, to raise the capacity up to 600,000 m3 per day (called Phase II project).
According to VIWASUPCO, the cancellation of contract signing of Package CCOG-09 is due to the changes in the objectives, scope and scale of investment stated in the bidding dossiers. In case of any additional costs incurred to the contractor, Board of Directors will agree to the company recorded compensation expense in the company's operation cost.
The contractor selection for CCOG-09 package was implemented under the international bidding form, closed at 13:00, 30 September 2015. Since March 2016, VIWASUPCO approved the contractor selection result for CCOG-09 package. According to this result, the Chinese Xinxing Ductile Iron Pipes Company Limited won with bidding price of VND 588.85 billion which was 11.8% lower than the approved value of the contract package.
Right after announcement of VIWASUPCO about contractor selection result, public opinion expressed concerns about the quality of ductile iron pipe of the winning bidders, Chinese contractor. After that, the Hanoi People's Committee has issued a petition to the Prime Minister to direct the investors to suspend the signing of the contract with the contractor supplying the ductile iron pipes and fittings under the project.
By early April 2016, the Government Office announced and Deputy Prime Minister Nguyen Xuan Phuc (now Prime Minister) agreed with the recommendations of the Hanoi People's Committee requesting the project investors temporarily to stop signing the contract with this supplier to research and evaluate carefully the issues related to the project.
