Who will secure financial guarantees for Long Thanh's construction consortiums?

The highly anticipated bidding session for Package 5.10 of Long Thanh Airport's Phase 1 passenger terminal construction project, valued at VND35 trillion (approximately $1.46 billion), has unveiled the contenders vying for this lucrative opportunity.

The disclosed bidding details provide insights into the proposals submitted by three notable consortiums – CHEC-BCEG-Vietnam Contractors, Hoa Lu, and VIETUR.

As the construction industry eagerly anticipates the outcome of this tender, it is worth delving into the specifics of each consortium's offering.

China Harbour Engineering Co., Ltd. (CHEC), headquartered in Beijing, spearheads the CHEC-BCEG-Vietnam Contractors consortium. Impressively, they have submitted a comprehensive package consisting of 36 boxes containing technical proposal documents.

Each set of technical proposals comprises 24 volumes. Should they secure the contract, the projected timeline for completion is estimated at 37 months.

To provide the necessary financial security, BIDV has agreed to furnish CHEC-BCEG-Vietnam Contractors with a guarantee amounting to VND370 billion (approximately $15.42 million), valid for 240 days.

Hoa Lu Consortium, led by Coteccons Construction JSC, presents a strong line-up of Vietnamese and Thai contractors.

Under the astute leadership of Coteccons, Vietnam's largest construction firm, the Hoa Lu consortium has assembled an impressive group of esteemed Vietnamese contractors, including Unicons, Thanh An, Delta, Central, An Phong, and Hoa Binh.

Notably, the consortium also includes Power Line Engineering (PLE), a prominent Thai construction business, renowned for its notable achievements in projects such as the $404 million satellite airport in Bangkok, Thai Parliament House, and the iconic SOHO building.

The consortium has submitted an extensive collection of 38 boxes, comprising a total of 38 volumes of technical proposal documents. This comprehensive submission demonstrates their commitment to delivering a robust and well-thought-out plan for the project.

Setting their sights on completing the construction within a 36-month timeframe, the Hoa Lu consortium presents the shortest projected duration among the three contenders. This ambitious timeline underscores their dedication to efficient execution and timely delivery.

To support the Hoa Lu consortium in their endeavours, BIDV has pledged to provide a guarantee of VND370 billion ($15.42 million), valid for a period of 180 days. This financial support from BIDV enhances the consortium's financial stability, offering reassurance against potential setbacks.

In a recent interview with VIR, Tran Quang Tuan, chairman and CEO of Central Construction (a member of the Hoa Lu Consortium), shared his insights into their proactive approach to securing project funding.

In case of a potential negative cash flow of approximately VND5 trillion ($208 million), Tuan revealed that Coteccons has collaborated with financial institutions such as Vietinbank, MB, TPBank, and BIDV to arrange comprehensive funding, safeguarding the project against any potential financial obstacles.

According to Viet Dragon Securities, Hoa Lu Consortium, celebrated for their substantial engineering teams and expertise in infrastructure development, is among the nation's finest.

"Coteccons, one of the top two listed enterprises within this grouping, has established itself as a force to be reckoned with in infrastructure construction. Simultaneously, Hoa Binh has carved a niche for itself, owing to its diligent attention to the minutiae of the finishing process, setting a high bar in the market with its scrupulous standards," Viet Dragon Securities said.

The Hoa Lu consortium's strategic approach, combined with the backing of reputable contractors and robust financial arrangements, positions them as a strong contender in the bidding process.

The VIETUR consortium, led by IC ISTAS Industrial and Trading Construction, a subsidiary of IC Holding from Turkey, brings a touch of international expertise to the tender.

Their submission consists of 30 boxes containing technical proposal documents, the lowest quantity among the three consortiums.

However, these comprise 60 volumes, highlighting their meticulous approach. With an anticipated construction period of 39 months, the VIETUR consortium presents the longest estimated timeline among their competitors.

The consortium members will benefit from guarantees provided by Vietinbank and BIDV. Vietinbank will support Ricons ($2.03 million), Newtecons ($1.56 million), SOL E&C ($950,000), Construction No. 1 ($1.08 million), ATAD Structural ($2.74 million), and Hawee M&E ($445,000).

BIDV, on the other hand, will extend its guarantees to Vinaconex ($1.7 million), Phuc Hung Holdings ($645,000), Construction Hanoi ($690,000), and IC ISTAS Industrial and Trading Construction Corporation ($3.57 million).

While the technical aspects of the bidding process have been made transparent, the financial proposal documents remain undisclosed at present. This crucial piece of information will play a pivotal role in evaluating the overall competitiveness and viability of each consortium's bid.

The ongoing tender for Package 5.10 of Long Thanh Airport's Phase 1 passenger terminal construction project has attracted significant attention from within the industry.

Airports Corporation of Vietnam (ACV) has unveiled plans to commence the construction of a $1.46 billion passenger terminal at the forthcoming Long Thanh International Airport in August, marking a significant milestone in the nation's ambitious three-phase airport project.

One of Vietnam's largest construction firms, Coteccons Group, is leading the Hoa Lu consortium in a highly anticipated bid for the monumental Long Thanh International Airport project in Dong Nai province. Within this diverse alliance, the Thailand-based Powerline Engineering Public Co., Ltd. (PLE) will play a pivotal role.

Prime Minister Pham Minh Chinh has stated the importance of deciding on a contractor for Package 5.10 of the Long Thanh International Airport project as quickly as possible, highlighting concerns over delays and the failure to meet the project's timeline as set by the National Assembly.