The sluggish implementation of Vietnam’s critical power source projects makes the electricity shortage more serious. Why have those projects been carried out by particular mechanisms like 797, 400 and 1.195 but they failed to complete in time? On May 29, 2007, the Electricity of Vietnam (EVN) sent the Official Dispatch No. 2.673 to report to the Prime Minister to explain the reasons and propose measures to speed up the implementation of crucial power source projects.
Among 19 hydropower projects and eight thermoelectricity projects executed by EVN, several projects have been behind the schedule, including A Vuong and Tuyen Quang hydropower projects. In addition, Ban Ve, Huoi Quang, Bat Chat, Dong Nai 3, Dong Nai 4 and other hydropower plant projects are also facing possible tardiness.
Competence issues
According to the explanation, the belatedness is resulted from five major reasons. Firstly, the establishment and approval of technical designs and overall calculations are slower than the expectations. The purpose for the introduction of special mechanisms for power projects is to improve the capability of domestic companies. However, the different level and weak capacity of executing units have become significant barriers. For example, the sub-consultant acted as main consultant; hence, the human resource and the quality of designs, supervision and on-site settlement failed to meet expectations. On the other hand, several projects are situated in areas with complicated geological conditions; therefore, many unexpected works emerged and needed resolving, for instance, A Vuong, Ban Ve, Ba Ha River, Buon Kuop and Buon Tua Srah hydroelectricity plants. As a result, although technical designs have been approved, the overall calculations could not be approved.
The site clearance encounters many difficulties because it is based on the 1/25,000 scale map, leading to the inaccuracy and disqualification of site investigation. In addition, the approval of overall plan and the mechanism of resettlement for several projects are moving at snail’s pace. Another hindrance is the sluggish and asynchronous bidding process and equipment purchase. Chinese equipment bidders are dominants at power projects because of their low bidding prices, acceptability of all kinds of project quality and implementation pace. However several problems emerged during the execution. The EVN report also pointed out the weak points of general contractors and subcontractors such as thin workforce. The roles of general contractor and subcontractor management boards have not been brought into full play and have not been adapted to the practical conditions. Many contractors could carry out only half of their work. At present, many members in contractor consortiums have been turned into joint stock companies operated in accordance with the Enterprise Law; thus, general contractors face difficulties in managing the execution as before the equitisation. In general, power source contractors are overloaded because they are in charge of numerous projects at the same time.
15 days to resolve problems
To ensure the punctual completion of the projects, EVN put forward a series of solutions. As for investors, they should set up and approve technical designs, overall calculations, EPC contracts, equipment supply bidding and make regular contacts with worksites to resolve any possible problems. Monthly, EVN leaders will investigate the execution of projects and ensure the resettlement of difficulties within the authority of investors within 15 days. The EVN Group pledged to provide sufficient capital to pay for finished items.
As for consultants, they should focus its forces to set up technical designs and overall calculations; intensify forces to supervise to resolve any possible changes on worksites. Projects with complicated structures and execution technologies will continue leasing foreign consultants. Project management boards will work with local authorities to speed up site clearance and compensations.
General contractors will reorganise management forces and will deliberately replace incapable contractors. Contractors must send weekly and monthly reports to general contractors and pledge to ensure workforce, vehicle, machinery, material and equipment for the execution in three consecutive working shifts a day. As for specialised projects, contractors should buy equipment and materials to strictly keep the project construction schedule. Capital will be given to contractors in time for buying materials (petroleum, cement, steel, etc) to meet the construction demand. General contractors and subcontractors will coordinate with project management boards to consult any amendments to the construction pace to match the overall construction work of the project.
Vietnamese
