Phương Hạnh Company Faces Threats of Termination by Chairman of National Power Transmission Corporation

The Chairman of the National Power Transmission Corporation (EVNNPT), Nguyen Tuan Tung, has recently proposed the replacement of Phuong Hanh Company, the contractor for the 500kV Thermal Power Plant Nam Dinh I - Thanh Hoa Transmission Line Project, due to their delayed progress.

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Phương Hạnh contractor demanded immediate replacement right at the construction site


EVNNPT Chairman demanded “getting rid of” the contractor right at the construction site

Reporting at the construction site of the 500kV line project from Nam Dinh I Thermal Power Plant – Thanh Hoa, carried out by contractor Phuong Hanh, the representative of the Construction Management Board said that there are still 8 piles not yet constructed, not yet excavated, and not yet pile driven. In the Nam Dinh I – Pho Noi line, Phuong Hanh contractor still has 16/16 piles not yet constructed, not yet excavated, and not yet pile driven. In the Quynh Luu – Thanh Hoa line, there are also 11/11 piles not yet constructed, not yet excavated, and not yet pile driven. The total number of positions not yet constructed, not yet excavated, and not yet pile driven by the three contractors on the three transmission lines is up to 35 positions.

Pile position 59 handed over to Phuong Hanh contractor over 2 and a half months ago but still not yet constructed. Moreover, the road to the construction site was only cleared half a day before the inspection team.

It is worth noting that for the Nam Dinh I – Thanh Hoa transmission line, the number of pile driving machines arranged for the new contracted packages is only 6, not enough compared to the commitment of 1 machine/position by the contractor, even though the parties had a meeting and a record dated February 16 regarding the delay in progress. On the other hand, the consultants have reported and requested that the contractor urgently supplement 12 more pile driving machines to ensure simultaneous construction of the pile positions.

Witnessing the pile position 59 located in Nga Phu commune (Nga Son district, Thanh Hoa) handed over for over 2 and a half months but still only an empty land, construction work is almost stagnant, Mr. Nguyen Tuan Tung, Chairman of EVNNPT immediately demanded an immediate replacement of the contractor as Phuong Hanh has a series of violations of the progress compared to the signed contract.

According to Mr. Tung, up to the current time, the progress of construction by Phuong Hanh contractor on the Nam Dinh 1 – Thanh Hoa line, Nam Dinh 1 – Pho Noi, Quynh Luu – Thanh Hoa is very slow compared to the progress in the signed contract. Several pile positions have been handed over for 1-2 months but Phuong Hanh contractor has not started construction, and has not arranged enough pile driving machines for the pile positions, which poses many risks to the project’s progress.

“Today’s decision has been made, there is no need to discuss anymore, whatever pile positions that Phuong Hanh has been handed over for more than 1 month without any activity must be immediately handed over. You have 28 piles but have only completed 17 piles. The remaining 11 piles have not been worked on at all while they must be completed and constructed by March 30th. Anh Hanh must take responsibility along with the leadership of the Northern Power Project Management Board to find a replacement contractor who has enough capacity and can properly hand over the work to them. Whatever the cost is, it belongs to your package, it’s your responsibility,” Mr. Tung directed and requested Phuong Hanh contractor to continue opening the road to the construction point while waiting for the replacement contractor.


“Boss” of Phuong Hanh Company said what?

Explaining the delay in construction of the pile positions, Mr. Le The Hanh, General Director of Phuong Hanh Company, said that the reason for not being able to start construction at pile positions 59 and 67 is because it took more than 1 month to negotiate compensation with the commune.

“Yesterday afternoon, the unit opened the road from position 57 to position 58. At noon on February 29th, it will open the road to position 59. Including construction and pile driving, it will take 53 days. I will make sure that by April 30th, all the positions will be completed,” Hanh explained.

However, when questioned by the EVNNPT Chairman about why there is only one construction grader and no report to the investor when encountering problems, Hanh affirmed that he will ensure the construction progress will be completed by April 30th.

Regarding the overall progress, EVNNPT stated that by the end of February 27th, all 4 500kV projects of circuit 3 are making temporary construction roads, digging and casting 950 pile positions; completed 100 pile positions; completed the installation of 1 steel pole and is currently installing 11 steel poles. In Nam Dinh, there are currently 3/26 positions yet to be constructed, and in Thanh Hoa, there are 8/133 positions yet to be constructed.

To accelerate the progress of the transmission line projects, the leaders of EVNNPT also requested the General Director of EVNNPT to proactively guide and develop plans to mobilize all resources of contractors, power transmission companies in EVNNPT, power companies in EVN, and local units to support and implement power cuts, pole erection, wire pulling, and simultaneous deployment on the route in the upcoming period.

“Require relevant departments and units to decisively organize and urge Phuong Hanh contractor to supplement labor, construction equipment, pile driving machines; carry out construction in 3 shifts and 4 teams and deploy “4 in-place” … to accelerate the construction progress of the positions that are delayed, complete the power connection before June 30th as instructed by the Prime Minister,” Mr. Tung ordered.


“Health” of Phuong Hanh Company


According to the research by Markettimes, Phuong Hanh Construction Company was established in 2004, with its address in Ngoc Trung commune, Ngoc Lac district, Thanh Hoa province. This company has won at least 63 tenders in many localities, with a total contract value of over 2,339 billion VND. Among them, the total contract value as an independent contractor is over 1,338 billion VND, and the total contract value as a joint venture is over 1,000 billion VND.

Phuong Hanh Company is one of the “familiar” contractors in Thanh Hoa province when it has won up to 33 tenders. In addition, the company also participates in tenders in many other localities such as: Nghe An (11 tenders), Nam Dinh (8 tenders), Quang Ngai (4 tenders), …

Recently, on February 7th, 2024, the Chairman of the People’s Committee of Nhu Thanh district, Mr. Dang Tien Dung signed a decision to approve the selection of a contractor in Package No. 03 – Construction and installation of works to move and return public works, section through Duc Pho town belonging to the Component project for compensation, support, and resettlement of the Quang Ngai-Hoai Nhon section, through Quang Ngai province, part of the project to build the Bac – Nam East high-speed road in the period 2021-2025, through the land of Dong Hoa town. The tender winner is the Consortium of Phuong Hanh Construction Company – Joint Stock Company MTV Xay Lap Dien 1-Dai Mo, with a winning price of over 18,775 billion VND, and a tender price of over 18,777 billion VND.

According to the information from EVNNPT, by late March 2024, the Project Management Board of Nghi Son 2 Thermal Power Plant received the prequalification documents of 4 contractors to implement the Package: ESPC-Hanh Bo landfill gas-to-energy. 

On January 30th, 2024, the Director of the Project Management Board for the Central Power Projects, under the National Power Transmission Corporation, Mr. Vu Tran Nguyen, signed the decision to select the winning contractor for Package No. 25 – Construction of the line from VT189 to VT199 of the 500kV Quynh Luu – Thanh Hoa transmission line project. The winning bidder is Phuong Hanh Company with a winning price of over 87,765 billion VND, and a tender price of over 88,286 billion VND. The contract performance period is 180 days.

On January 9th, 2024, the Director of the Project Management Board for the Northern Power Projects, under the National Power Transmission Corporation, Mr. Hoang Van Tuyen, signed a decision to approve the selection of the winning contractor for Package No. 41 – Construction of the line from VT09 to VT25, part of the 500kV Nong Son – Nam Dinh I transmission line project. The contractor awarded the contract is Phuong Hanh Company with a winning price of over 78,504 billion VND, and a tender price of over 78,750 billion VND. The implementation period of the contract is 180 days.

Phuong Hanh Company wins a contract worth over 78,504 billion VND

On April 20th, 2023, at Tu Hai Party Committee, Deputy Secretary of Provincial Party Committee, Mr. Nguyen Duc Long, Head of the Bidding Evaluation Committee signed a decision to select the contractor at Package No. QS03-2023 Suoi Ham – Xia Huoi (Phuong Hanh – Thi Xuan Phuong) and Package No. QS14-2023 (Phuong Hanh – LTB) – Mr. Phuong Van Thai’s line. 

On April 5th, 2023, the District People’s Committee stated its selection of the winning contractor at Package No. 90-2023 – construction of five investment projects in 2023 of Dong Hy People’s Committee with a total cost of over 24 billion VND.

It is not yet known why Phuong Hanh Company has won many large-value contracts (especially in late 2023 and early 2024) which may result in the company spreading thin and possibly lacking personnel, materials, machinery and equipment for one tender, which could happen. However, the company’s capacity is true as it has won many large-value bids.

SOURCEcafef
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