The State Audit (SAV) has just had information on the results of the audit of construction activities and the management and use of investment capital of Project Component 3 (construction of essential works) of the construction investment project. Construction of Long Thanh Airport, Long Thanh district, Dong Nai province) phase 1.
Many shortcomings and limitations at Long Thanh Airport Component 3 Project
According to the State Audit, through audit, the feasibility study report of Project Component 3 has not clearly explained the need to soon invest in runway No. 2 to ensure the continuous operating capacity of the airport in case of emergency. Runway No. 1 had a problem and had to be closed.
The appraisal report of Project Component 3 of Vietnam Airports Corporation (ACV) does not have an appraisal opinion on the total investment of the remaining items according to regulations; The total investment of the remaining items of project component 3 has not been reviewed and updated by ACV, the price level and exchange rate according to the time of appraisal and approval of the project.
Long Thanh International Airport is a key project in Vietnam. Photo: ACV
In addition, the State Audit discovered that the design documents and pile foundation calculations for the passenger terminal were prepared by the consulting unit and approved by the investor when the technical design of the passenger terminal item (upper part) was not completed. appraisal and approval; Technical design documents for package No. 3.4 Ground leveling lack some required documents; Estimates of some bidding packages do not accurately calculate volume and apply incorrect norms for some construction tasks, increasing the estimated value.
The investor approves the contractor selection plan and organizes bidding, constructing the passenger terminal pile construction package when the project has not been approved; organizing contractor selection late compared to the approved bidding plan…
The investor has not properly reorganized the content of norms as a basis for acceptance and payment for soil leveling and compaction work to the required density K=0.95 for improved compaction according to the provisions of the Contract; The method for determining the volume of orphan rocks has not been evaluated and approved to accurately determine the actual volume of soil and rock excavation as a basis for settlement (contract package No. 3.4 Leveling); Paying for bomb and mine destruction costs without supporting documents according to contract regulations (contract package No. 1.3 Construction of mine and explosive material clearance).
Construction workers at Long Thanh International Airport. Photo: T.Thuyen
In addition, the investor did not purchase project insurance during the construction period according to regulations (Package No. 5.6: Construction of passenger terminal foundation piles); The construction process was not carried out correctly and did not include the full content of the decision to approve the Environmental Impact Assessment Report (Package No. 3.4 Leveling); The construction diary lacks a sketch of the scope of bomb and mine clearance according to regulations (Package No. 1.3 Construction of mine and explosive material clearance).
According to the approved schedule, the project will be completed and put into operation in 2025. However, according to actual progress, it is expected that the project will be completed and handed over to use after 2026, slower than expected. approved progress.
The State Audit also discovered that the management of project investment costs had errors in volume, had not calculated fuel price adjustments according to regulations,… leading to errors in determining project investment costs. .
Construction of Long Thanh Airport is being implemented aggressively. Photo: T.Thuyen
According to ACV’s report, the project’s investment capital need for the 2021-2025 period is expected to be 71,311 billion VND, lower than the project’s investment capital need for 2025 according to the investment approval decision of the component project. 3 is 92,922 billion VND.
The investment capital need for the project in the period 2021-2025 is expected to be built by ACV on the basis of the expected progress of bidding packages until 2025, the remaining capital will be disbursed after 2025. However, by the time The audit point does not have an official document on increasing the credit level for ACV and ACV has not signed an official loan contract with banks, the value of banks considering granting credit to ACV is 1,325 million USD, not enough to meet the capital needs to be mobilized for both options.
On the other hand, ACV’s 2023 capital plan is VND 22,763 billion, which is not consistent with ACV’s current capital balance plan.
Fulfilling its obligations to the State Budget, the State Audit clearly shows that, at the time of the audit, ACV has not yet declared and paid fees for granting mineral exploitation rights for the volume of excavated soil and backfill within the project scope according to the project. request of Dong Nai Provincial People’s Committee. Regarding this content, ACV needs to report to the Ministry of Natural Resources and Environment and relevant authorities for guidance on implementation in accordance with the provisions of law.
At the same time, ACV has not carried out the procedures to enjoy resource tax exemption according to the provisions of law; Has not yet declared and paid environmental protection fees according to regulations, the amount of VND 30,221 billion corresponding to the volume of exploited resources according to acceptance results as of June 30, 2023.
What does the State Audit recommend to ACV?
From the audit results, the State Audit proposed to increase budget revenue by the amount of 33,036 billion VND, including: Declaring and adjusting to reduce deductible VAT corresponding to the value of the investment cost deduction of the amount of 2,815 billion VND ; Implement declaration and payment of environmental protection fee of 30,221 billion VND for the volume of land exploited for leveling for works that are accepted until June 30, 2023; At the same time, review the volume of exploited resources used for the project to finalize according to regulations.
The State Audit proposes to reduce expenses for businesses by the amount of 32 billion VND due to incorrect volume, calculation of fuel price adjustment has not been carried out according to contract regulations,…
The Component 3 project of Long Thanh Airport was pointed out by the State Audit for many limitations.
Through audit, the State Audit recommended that ACV coordinate with relevant units to check and review documents as a basis for payment of bomb and mine destruction costs under package 1.3 Construction of mine and explosive material clearance; Accurately reorganize the contents of the norms according to regulations as a basis for building the unit price to settle the work of soil leveling and compaction to the required density K=0.95 for improved compaction.
In addition, the State Audit requested ACV to rectify construction investment management.
On the other hand, ACV needs to learn from collective and individual experience that there are some shortcomings and limitations in project investment management such as: Preparation, appraisal, and approval of total investment; design and estimating work; contractor selection, contract negotiation and contract management; quality management, project progress…
