Many violations in 3 railway signal information projects

The Ministry of Transport has just concluded the inspection of three railway signal information system investment projects invested by Vietnam Railways Corporation (VNR) using ODA loans. The conclusion was signed by Deputy Minister Nguyen Ngoc Dong.

Signal information projects by Vietnam Railways Corporation are all behind schedule.

The three projects subject to inspection include: The Railway Signal Information Modernization Project for the Hanoi - Lao Cai, Hanoi - Dong Dang, Hanoi - Thai Nguyen and Hanoi Terminal, funded by Chinese ODA loans (Project 3+1); The Railway Signal Information Modernization Project for the Vinh - Saigon section, Thong Nhat railway line, phase 1 funded by Chinese ODA loans (VSG) and the Railway Signal Information System Project for the Hanoi - Vinh section, funded by French ODA loans (HNV - Phase 2).

In conclusion, all three projects are behind schedule. The 3+1 project is 6 years behind schedule. The VSG project is 7 years behind schedule and the HNV - Phase 2 project is 4 years behind schedule. At the time of reporting (around July 2014), although the remaining volume is not much, all of the tasks require high expertise.

Previously, in mid-May, the 3+1 Project had 9 personnel and the VSG Project had 20 Chinese personnel withdrawing to the country. It was not until the end of June that the EPC general contractor mobilized personnel again.

In addition to the very slow progress, the conclusion of the Ministry of Transport also clearly stated that the work of establishing, appraising, and approving the adjusted total investment of these projects is nearly twice as high as the actual amount. The centralized power system applied to the interlocking equipment in the three projects is not technologically synchronous. The survey and design of the switchboard system is not close to reality...

The adjustment of the total investment level to nearly twice as high has greatly affected the project's efficiency, not fully utilizing preferential loans, cutting down many investment items, and prolonging the project's duration due to having to re-negotiate and sign the Loan Agreement.

Deputy Minister Nguyen Ngoc Dong severely criticized the leaders of VNR, the Investment Preparation Board, the Railway Project Management Board (RPMU); warned the Transport Investment and Construction Consulting Company (TRICC), deducted points in the rating assessment. The Ministry of Transport also deducted points in the rating assessment and posted violations on the Ministry of Transport's website and the electronic information page on bidding for China Zhongxing Telecommunications Corporation Limited (ZTE), China Railway 6th Group Corporation (CRSG).

Deputy Minister Nguyen Ngoc Dong also requested VNR to recover the cost of surveying, designing, and adjusting the total investment of the project, a total amount of nearly 460 million VND corresponding to the value of the incorrectly established total investment.

According to GTVT newspaper