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Many mistakes at the Yen Vien – Lao Cai railway renovation and upgrading project

Many mistakes at the Yen Vien - Lao Cai railway renovation and upgrading project

The State Audit has pointed out a number of mistakes in construction and management of investment capital in the project of renovating and upgrading the Yen Vien – Lao Cai railway in the Kunming – Hai Phong corridor.

Particularly, the project has to handle financial at a record level, nearly VND585 billion.

Increase total investment of VND 2,188 billion

The State Audit clearly states that the management of expenses still has some problems such as wrong payment of volume, wrong unit price, norm and difference value of nearly VND585 billion, accounting for approximately 19% of total The value of the project is over VND 3,434 billion.

Many mistakes at the Yen Vien - Lao Cai railway renovation and upgrading project
Many mistakes at the Yen Vien – Lao Cai railway renovation and upgrading project

The State Audit has determined that there have been mistakes made at the stage of formulation, appraisal and approval of investment projects, such as the fact that the demand for investment has not been close enough to replace the P43 into rails P50, thus wasting capital, approximately VND 930.6 billion; The total amount of investment is not accurate with the amount of VND 315 billion; The progress of the technical design phase is slow to adjust the project increased total investment due to price slippage is 2.188 billion.

Remarkably, the State Audit pointed out, design options are wasted because the design of the P43 rails instead of the P50 is not necessary because the railway is currently used normally; The estimation of bidding packages was wrong and auditing showed that VND244,593 billion reduction was made (VND 114.637 billion was wrong, VND 60,541 billion was wrong, VND 69,413 billion differences) .

The Railway Construction Management Board has signed the construction contract with the CP1, CP2, CP3, CP5 and RP bidding packages, which are not fully competent according to the regulations of the Vietnam Railways Corporation.

At the same time, the Railway Project Management Unit did not consider adjusting the RP contract volume when the number of rails was identified, in excess of the demand of the project, specifically: Ray P50 For the second phase of the project, the consultancy was overdue compared to the demand, leading to the surplus of unused materials for the project with the value of VND 135 billion.

7 delegations to France to inspect but not effective

During the implementation of the project, it was unnecessary to have seven inspection delegations to France, wasting more than VND 3 billion.

Meanwhile, in the management of the quality of the work is also flawed, many tender packages proportion of stones do not meet the proportion of stone slabs failed, the platform at the wrong package CP2 design but still be completed.

Regarding the progress of the project, most of the stages are indicated as slow. Bidding package CS (Technical design consultancy), the time to prepare the bidding plan lasts 4 months, the time for selection of contractor is 1 month and contract implementation is 10 months. Bidding package CS3 (Consultant for completion of technical design and design of Lao Cai station), preparation time for 9 months.

On the use and management of capital, the State Audit also pointed out that after adjusting the total investment, the Ministry of Transport did not calculate the value added tax for the adjusted project, while using VND138,355 billion and $ 8,674,536 in value added tax on additional items (site clearance, management fee, other expenses …) without reporting to the competent authority.

Personal and collective assessments

With these errors, the State Audit of Vietnam proposed that the Railways Management Board have to deal financially with nearly VND 585 billion. In addition, the Board must draw experience points for collectives and individuals related to errors and shortcomings in the elaboration, examination, evaluation and approval of investment projects, technical designs and cost estimates The selecting contractors, negotiating and signing contracts; manage progress, quality.

In addition, it is necessary to adjust accounting books, financial reports on ODA (ADB loans) to VND 351,253,808 due to incorrect accounting of exchange rates after the announcement on readjustment of state budget revenues and expenditures of Ministry of Finance.

The State Audit also requested the Ministry of Transport to direct the sub-contractors and relevant individuals to make a self-criticism in making and evaluating the total investment and total adjusted investment excluding VAT for the project. while using VND138,355 billion and $ 8,674,536 in value added tax paid for additional content without reporting to competent authorities.

Ministry of Transport shall direct the Vietnam Railway Corporation and the Railway Management Unit to review, clarify and handle according to regulations the contents not in compliance with the regulations of the Ministry of Finance and the direction of the investors in the works. Project management costs of site mobilization and management of construction contractors of CP1, CP2, CP3 packages and cost of procurement of equipment for consultants with the value of VND41.460 billion and $257,273; Accepted the completed volume of CP2 package design with the value of VND2,054 billion and $ 6,293; Signing, executing the contract RP package to occur excess VND199,647 billion of procurement ray, recording …

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Many mistakes at the Yen Vien – Lao Cai railway renovation and upgrading project
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