Noi Bai terminal project 20-30 percent more expensive, says Transport Minister With only one contractor bidding on the T2 Terminal of the Noi Bai International Airport and the Tan Vu - Lach Huyen road project, these projects are threatening to cost far more than they should, claims Minister of Transport Dinh La Thang. The Terminal T2 project has total funding of nearly US$900 million, with about $691 million of that in Japanese ODA loans. The project is expected to be completed in November. Speaking at the April cabinet meeting on Tuesday, Thang said tenders to choose contractors for ODA-funded projects, especially STEP-funded projects, are often little more than formalities as, in many cases, bids come in from only one contractor. (The STEP program provides loans for projects using most of the technology and methodologies of Japan, based on the request of the recipient countries). Citing the T2 terminal project in Noi Bai International Airport in Hanoi and the Tan Vu - Lach Huyen road project in Hai Phong as examples, Thang stressed: "The selection of the contractor depends on the Japanese side. Three or four contractors bought the tender documents but only one actually participated in the tender. This makes the projects more expensive than usual by 20-30 percent." Thang said the Ministry of Transport had asked the Ministry of Planning and Investment to diversify contractors for Japanese ODA-funded projects, particularly STEP projects. The Terminal T2 project has total funding of nearly US$900 million, with about $691 million of that in Japanese ODA loans. The project is expected to be completed in November. Referring to allegations that Japanese contractor JTC bribed some Vietnamese railway officials upwards of JPY80 million, Chairman of the Government Office, Mr. Nguyen Van Nen, said Prime Minister Nguyen Tan Dung had requested that all be vigilant and ensure that the investigation is in accordance with the process prescribed by Vietnamese law. "The transport sector said it is unusual for a STEP-funded project. As stipulated by the donor, only Japanese contractors are allowed to be involved in this project but in the end there was only one bidder. Without competition, bribes are often a problem," Nen said. Nen said PM Dung is very interested in this case. Although the PM assigned Deputy Prime Ministers Nguyen Xuan Phuc and Pham Binh Minh to investigate the incident, he did meet with the Japanese Prime Minister to discuss the subject while on the sidelines of a recent international conference. "The first words that the two Prime Ministers said to each other were that they needed to closely coordinate, cautiously investigate, strictly handle the case and learn from experience to prevent such situations from occurring again in the future,” Nen added. Tran Cham, VietNamNet Bridge