Deputy Prime Minister Nguyen Xuan Phuc on April 6 approved the proposal from Hanoi People's Committee to halt a contract won by the Chinese Xinxing Company.
The water pipeline has broken 17 times
Phuc asked the Ministry of Construction to co-operate with Hanoi People's Committee and other agencies to inform Vinaconex.
Hanoi’s authorities will then review the project. They also proposed to hire experienced foreign consultants to evaluate and supervise the pipe quality.
The investor must publicise the results and find another contractor if Xinxing fail to meet required standards. Hanoi’s authorities have asked for the proposal to be implemented with the results available by the end of April.
The decision was made after public concern was expressed following the announcement that the ductile iron pipe supply contract for Phase 2 of the Song Da Water Pipeline Project would be awarded to the Chinese-owned Xinxing Co. Ltd. Xinxing have been criticised for providing substandard products in Vietnam previously.
A representative of Indian contractor, the Jindal Saw Company, claimed the firm had lost in the tendering process and implied the auction had lacked transparency.