HÀ NỘI — Viwasupco, which is implementing a Hà Nội water supply project, said it had cancelled a bid and would not sign a contract with China’s Xinxing Ductile Iron Pipes Co. Ltd.

The Xinxing Corporation had won the bid for the supply of materials for the second phase of the Đà River water pipeline construction.

The firm would have supplied materials at 10 per cent less cost than the approved amount.

Viwasupco had said it had awarded the VNĐ588-billion (US$26.25 million) contract to supply ductile iron pipes and fittings for the 21km Sông Đà pipeline to Xinxing.

The decision regarding a crucial water project being contracted to a Chinese firm immediately attracted public reaction as the pipe has broken 17 times since the completion of its first phase in 2009.

Following public concern over the quality of Chinese products, the Hà Nội Department of Construction had to hold a meeting to have Viwasupco report on how it had chosen the Chinese contractor for a project that would “ensure livelihood security and social stability” for the entire capital.

The construction of Đà River Water Project Phase 2 is an important project providing clean water to people in the capital, and ensuring livelihood security and social stability.

Because of the importance of the project, Viwasupco conducted open international bidding to choose contractors with sufficient capacity and experience.

After the selection process, Xinxing Corporation was awarded the contract by Vinwasupco. 

The second phase of the project started last October after several delays. The project is part of a larger one to supply clean water to nearly 200,000 households living in Sơn Tây, Hòa Lạc, Xuân Mai and Miếu Môn, as well as Hà Nội and Hà Đông urban areas.— VNS