Bach Mai and Viet Duc Hospital Project behind schedule: Ministry of Health asked for specific mechanism

Regarding the fact that the project of Bach Mai 2 Hospital  and Viet Duc 2 Hospital in Ha Nam has slowed down, Ministry of Health has explained and asked the Government to add specific mechanism.

Money is not lacking, 2 projects “trillion” still behind schedule 18 months?

Deputy Prime Minister Vuong Dinh Hue said that the implementation of Bach Mai Hospital and Viet Duc 2 Hospital was halted for the first time in 18 months.

According to the Deputy Prime Minister, this is one of the weak examples in construction investment: the urgent need, the hospital is overloaded, the patient is miserable, the state concentrated all power here, not short of money , but this project disbursed very slowly, no workers work.

Bach Mai Hospital in Ha Nam

Reminded by the Ministry of Health, Deputy Prime Minister Vuong Dinh Hue noted the risk that these two projects would become new weak-loss projects, similar to the 12 weak industry projects of the industry.

Prior to this incident, Ministry of Health has reported to Prime Minister on the progress of the two projects.

Specifically, Ministry of Health said that the total investment approved initially by Bach Mai 2 Hospital  is VND4.990 billion, Viet Duc Hospital is  VND4.968 billion, then the Government allocated for each project is VND 4,050 billion, the remaining 10% is not yet allocated.

For project 2 of Bach Mai Hospital, contractor of Corporation 36 – General Corporation 319 – Thanh An Corporation won the tender package for the main building block; Thanh Dat – Vinaconex 25 won the bidding package for technical infrastructure outside the home and some other contractors.

For Viet Duc 2  Hospital project , the consortium of contractors of Hanoi Construction Corporation – Hong Ha Joint Stock Company and Vietnam Joint Stock Company won the bid for building the main building block; Thanh Dat – Vinaconex 25 won the contract for technical infrastructure outside the home and some other contractors.

Architects of both projects are VK (Belgium).

The overall perspective of Bach Mai 2 Hospital  in Ha Nam.

The project was launched on February 24, 2015, officially constructed in May 2015. At present, the project has been implemented for 3 years. However, Ministry of Health said the project was delayed by about 18 months and reported to the Prime Minister to extend the duration of Project 125 to 2019 to suit the situation.

Ministry of Health has also decided to adjust the project completion schedule by December 2018 and finalize the project by 2019.

On the disbursement, Ministry of Health said that in the second project of Bach Mai Hospital, the disbursed capital to May 10, 2018 is VND1,752 billion out of the total capital of VND2,285.8 billion , reaching the rate of 76.66%.

For project 2 of Viet Duc Hospital, the accumulated capital disbursed to May 10, 2018 is VND 1.630 billion on the total capital granted is VND2.134,6 billion, reaching the rate of 76.36%.

Deployed 3 years, the new Ministry of Health “cries”

Explaining the reasons behind the project’s slow progress, Ministry of Health said that the project schedule of the projects under Project 125 was 2-3 years too short, difficult to implement and could not be completed in 3 years. Due to the fact that the time for implementing large and modern hospital construction projects from the time of investment preparation, construction and completion is usually 5-7 years.

In addition, the time set for design work is too short (6 months), not enough time to complete should be extended time.

“In the implementation process must be changed, adjusted due to the requirements of the hospital, due to review the total reduction of investment. Besides, VK Design Company (Belgium) simultaneously deployed 2 big hospital projects so it did not meet the requirements of progress, manpower and finance of contractors also encountered many difficulties, ” Ministry of Health said.

Ministry of Health also explained that the time for the long-term estimation and approval of technical designs and cost estimates was long due to the transition between the old Law on Construction and the new Law on Construction.

Ministry of Construction shall be responsible for appraising technical designs and cost estimates of works. By October, 2017, Ministry of Construction has completed the technical design documents for electrical engineering, infrastructure, wastewater treatment, information technology construction and installation. Estimates of these items are being evaluated.

Ministry of Health is responsible for approving the technical design and cost estimate of the project. Up to now, due to the lack of estimated budget, Ministry of Health is still reviewing to approve the design of the remaining items of the project.

Another reason given by the Ministry of Health is due to the change in total investment, from VND5 trillion / project to VND4,050 billion / project, the Ministry must adjust the design to reduce the total investment.

In addition, the disbursement of payments at the State Treasury is difficult due to the fact that the volume has been completed but the approved budget has not yet been approved, so payment will only be made up to 50% of the completed value. This causes the contractor to have financial difficulties, thus affecting the construction work of the site.

On the other hand, regulations on advance guarantee, payment also make it difficult for contractors and investors.

Ministry of Health accepts responsibility and asks for specific mechanisms

On the above developments, Minister of Health has claimed responsibility for delaying the plan. At the same time, to propose the Prime Minister to permit the application of a number of specific mechanisms in the evaluation, approval of designs, construction and payment of contracts to accelerate the project’s progress.

Specifically, the project implemented both design and construction of each section, each stage of the project. Appraisal and approval of pre-designs for immediate execution, appraisal and approval of post-deployment estimates.

Besides, it is the construction immediately following the design dossiers which have been inspected and appraised and assigned the investor to coordinate with the acceptance tester in compliance with the approved design; Make payment according to the volume according to the actual construction and the contract price will be adjusted on the basis of the cost estimate appraised and approved by the competent authority.

In addition, the Ministry of Health proposes to extend the progress of the project until 2019; the inauguration of the day care and treatment center by 12/2018, the completion of the project and the final settlement of the project in 2019.

The Ministry also suggested the Ministry of Construction to continue working closely with the Ministry of Health to accelerate the time for design appraisal, estimation and quality inspection. The Ministry of Finance and the Ministry of Planning and Investment shall create additional conditions for allocating additional funds in 2018 for the project according to the progress of the project.

In addition, the Ministry of Health has proposed to allow the use of 10% (VND 900 billion) of contingency funds to meet the project’s objectives (of which Bach Mai Hospital is VND 450 billion, Viet Duc Hospital VND450 billions).

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