Posco E&C wins contract to construct steel factory

HA NOI (VNS)— Posco Engineering&Construction Co, the construction arm of South Korea's largest steelmaker, Posco, has beat 10 other contractors to secure the US$302 million deal to build the Formosa Raw Material Handling Yard in Viet Nam. Under the contract with Formosa Ha Tinh Steel Corp, an affiliate of Viet Nam's Formosa Group, Posco E&C will build the facility in a steel complex in central Ha Tinh Province. Construction on the project, which will have an annual production capacity of 7 million tonnes per year of crude steel, will begin in February and finish by January 2015.-VNS … [Read more...]

FPG begins constructing steel mill in Vietnam

Construction began Sunday on a blast furnace that will be part of a steel mill complex built with investment by Formosa Ha Tinh Steel Corp., a Formosa Plastics Group (FPG) steel venture in Vietnam. FPG president William Wong said that in the primary stage of construction, the company expects to hire around 10,000 Vietnamese workers. The complex is aimed at turning Ha Tinhi, a province on the country's north central coast, into a key industrial city. Vietnamese Prime Minister Nguyen Tan Dung attended the ground-breaking ceremony for the blast furnace, which is expected to go into operation in 2015. … [Read more...]

Steel giant heads abroad for forex

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Formosa Ha Tinh Steel Corp has set its sights on increasing exports as a way of maintaining its much-needed foreign exchange balance. illustration photo The move follows the Vietnamese government's thumbs down on the company's requests for a mechanism that would see its dong earnings converted into forex. Last year, the Taiwanese investor made a concerted push to obtain foreign exchange balance support from Vietnamese authorities. The company needs to guarantee it has enough capital to import raw materials required to run its mammoth steel complex in central Ha Tinh province's Vung Ang Economic Zone (VAEZ). According to the firm (FHS), the company needed $2.8 billion a year to import iron ore, coke coal and other materials for its $16 billion steel project, which had the capacity to produce up to 7.5 million tonnes of steel in the first phase of operation. The first phase, developed to the tune of $8.9 billion, is scheduled to start commissioning from around 2013. FHS will be … [Read more...]

Formosa’s FX fears

Taiwan's Formosa is seeking Vietnamese authorities' support to mobilise foreign currency to run its giant steel complex in central Vietnam. According to Chu Xuan Pham, representative of the Formosa Ha Tinh Steel Corp. (FHS), the Taiwanese firm would need $2.8 billion a year to import iron ore, coke coal and other materials for its Vung Ang Industrial Park-based steel plant in Ha Tinh province, to produce 7.5 million tonnes of steel in the first phase of operation. The first phase, which has a total investment capital of $8.9 billion for building a port, a steel plant and a power plant, is projected to be commissioned from 2013. Pham said that after putting the plant into operation, the company would be able to get around $1.4 billion a year, or a half of the required working capital, from selling steel products abroad. "We will also sell our steel products, including steel shape, plate and billets, in the Vietnamese market, through which we will earn a lot in Vietnamese dong," … [Read more...]

PV Gas, Posco sign gas processing contract

Leaders of PV Gas South Korea's Posco Engineering Co Ltd., along with PetroVietnam Technical Services Corporation at the signing ceremony. — Photo dddn.com.vn

HA NOI (Biz Hub) — PetroVietnam Gas Corporation (PV Gas) and a joint venture of South Korea's Posco Engineering Co Ltd., along with PetroVietnam Technical Services Corporation (PTSC), signed an engineering, procurement and construction (EPC) contract on August 13 for the VND5.5 trillion ($248.81 million) first stage construction of the Ca Mau Gas Processing Plant. The project, located at Khanh An Industrial Zone, Khanh An Commune, U Minh District in the southern-most province of Ca Mau, includes construction of a gas processing plant, storage facility, port and a 37 km pipeline. Total investment capital for the project has been set at VND11 trillion ($497.62 million). The Ca Mau Gas Processing Plant project will use the advanced liquid separation technology developed by UOP Company, a subsidiary of the US based Honeywell Corporation. Raw materials for the plant will come from local mines, such as Cai Nuoc and others in the south western region. Upon completion, after an … [Read more...]

ODA needs stricter controls

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VietNamNet Bridge – Professor Nguyen Minh Thuyet, former Vice Chairman of the National Assembly Committee on Culture, Education, Youth and Children spoke to Tien Phong (Vanguard) newspaper about ODA usage. POSCO E&C executives in charge of expressway projects in Viet Nam have been accused of creating slush funds to bribe Vietnamese contractors. Do you think this incident exposes more dark spots in Viet Nam's use of ODA? In 2010, a bribery case involving Pacific Consultants International, a Japanese company contracted to construct the HCM City East-West Corridor, was brought to light. After the case, I questioned Prime Minister Nguyen Tan Dung twice during National Assembly meetings. Finally the case was settled in court. More recently, a slush fund operated by executives of POSCO Engineering&Constrcution Company for expressway projects in Viet Nam has been uncovered. These show that Viet Nam has not learnt from the cases of bad practices in ODA management. In your … [Read more...]

Vietnam begins inspecting projects implemented by slush fund-hit Korean firm

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Vietnam has kicked off an inspection of expressway projects South Korea firm POSCO Engineering and Construction (E&C) was contracted to after Korean media reported that an executive of the firm set up a slush fund and embezzled millions of U.S. dollars when working as the country director in Vietnam during the 2009-2012 period. According to a decision made by Minister of Transport Dinh La Thang on Thursday, a six-member inspection team, including representatives from the Ministry of Transport, its Finance Department, Department of Science and Technology, and Department of Transport Construction and Quality Management, is led by the ministry’s Deputy Chief Inspector Le Van Doan. The delegation is inspecting the selection of contractors and acceptance of payment and settlement to detect any weaknesses, flaws, and violations of the law. The inspection team will also propose amendments and supplements to current mechanisms, policies, and regulations in order to enhance … [Read more...]

Transport Ministry looks into projects contracted to RoK’s POSCO E&C

Minister of Transport Dinh La Thang decided to set up an inspection team to look into expressway projects contracted to the Republic of Korea’s POSCO Engineering and Construction (E&C) on April 9. The inspection team includes six members from the Ministry of Transport, its Finance Departments, Department of Science and Technology, and Department of Transport Construction and Quality Management, headed by the Ministry’s Deputy Chief Inspector Le Van Doan. The inspectors will look into the process of selecting contractors, assessing and making payments, looking for any possible wrongdoings and violation of law. Based on the results, the inspectors will make proposals to improve State management capacity and ensure the transparency of transport construction projects. The same day, Kwon Sang Kee, an executive in charge of the Southeast Asian branch of POSCO E&C, sent a document to the Vietnam Ministry of Transport and the Vietnam Expressway Corporation (VEC) in … [Read more...]

Vietnam to inspect projects embroiled in South Korea’s slush fund scandal

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A section of Noi Bai-Lao Cai Expressway linking Hanoi and Lao Cai Province that has been found sinking after opening to traffic in 2014. Photo: Mai Ha The Ministry of Transport has decided to launch an inspection into five packages of two expressway projects contracted to South Korea’s POSCO Engineering & Construction Co., which is embroiled in a slush fund scandal. Minister Dinh La Thang said in a decision on Thursday that a team of six inspectors will look into the process of selecting contractors, assessing, and making payments to find possible wrongdoings and violations of law. Any wrongdoings or violations will be punished, Thang said. Based on the inspection results, the ministry will also make proposals to improve the capacity of state management and ensure the transparency of ODA-funded projects. POSCO E&C was the main contractor of five packages at Noi Bai-Lao Cai Expressway linking Hanoi and Lao Cao Province and Ho Chi Minh City-Long Thanh-Dau Giay … [Read more...]

Ministry clarifies POSCO E&C issues

The Ministry of Transport (MoT) has not received any official information relating to news reports that steelmaker POSCO Engineering and Construction (E&C) of the Republic of Korea was implicated in the creation of a slush fund in a construction project in Vietnam, Deputy Transport Minister Nguyen Hong Truong has said. Talking to the Vietnam News Agency reporter about the issue, the Deputy Transport Minister said the MoT only knew what the foreign media had reported. RoK media and some Vietnamese newspapers have recently carried a number of headlines about the arrest of a former POSCO E&C executive. He is suspected to have created a slush fund to pay sub-constructors between 2009 and 2012, when he was leading the Vietnam project as its overseas unit chief. Deputy Minister Truong said that POSCO E&C was in charge of three construction packages of the Noi Bai-Lao Cai Expressway, which was funded by the Asian Development Bank (ADB). He said that all bids for the 1.2 … [Read more...]

Vietnam responds to RoK’s slush fund scandal

The Ministry of Transport is reviewing contracts signed with POSCO Engineering and Construction after the Korean company is investigated in its home country for operating a slush fund of about 10 billion won (US$8.9 million) in Vietnam. All findings by the Vietnam Expressway Corporation will be submitted to Korean authorities when requested, Deputy Transport Minister Nguyen Hong Truong told the press on April 3. He said his ministry learned about the POSCO scandal through media reports, promising to provide more detailed information once there are reports from the Republic of Korea's authorities. "As Vietnam is fighting corruption in every sector, the news is attracting a great deal of public attention," he said. Korean media last month reported that POSCO E&C, a subsidiary of giant steelmaker POSCO, allegedly operated a slush fund of 10 billion won by adjusting the costs of its projects between 2009 and 2012 in Vietnam. According to Truong, the deputy minister, during the … [Read more...]

VN not yet officially informed of Posco’s slush fund

The Noi Bai-Lao Cai Highway.

VietNamNet Bridge – Prosecutors raided the offices of three subcontractors of Posco on Tuesday, as part of an investigation into allegations that the company created a slush fund in Vietnam, reported The Korea Times. According to this newspaper, Seoul Central District Prosecutors' Office said it had collected internal documents and computer hard disks from the subcontractors in question. The three were involved in POSCO's construction projects in Vietnam. Prosecutors also raided the homes of some of the subcontractors' executives. Some of POSCO's executives in charge of projects in Southeast Asia allegedly created the slush fund of 10 billion won ($8.9 million) by inflating the costs of building expressways in Vietnam from 2009 to 2012 in collusion with local subcontractors, the newspaper said. The Korean Times reported that investigators raided the head office of POSCO Engineering & Construction in Songdo, Incheon, and the homes of several executives Friday. Meanwhile, … [Read more...]

Vietnam responds to South Korea’s slush fund scandal, finds nothing amiss

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Noi Bai - Lao Cai expressway, one of a few projects executed by South Korean-owned POSCO E&C in Vietnam between 2009-2012. Photo: Thai Son The Ministry of Transport is reviewing contracts signed with POSCO Engineering and Construction after the South Korean company is investigated in its home country for operating a slush fund of about 10 billion won (US$8.9 million) in Vietnam. All findings by the Vietnam Expressway Corporation will be submitted to Korean authorities when requested, Deputy Transport Minister Nguyen Hong Truong told the press on Friday. He said his ministry learned about the POSCO scandal through media reports, promising to provide more detailed information once there are reports from South Korea's authorities. "As Vietnam is fighting corruption in every sector, the news is attracting a great deal of public attention," he said. South Korean media last month reported that POSCO E&C, a subsidiary of giant steelmaker POSCO, allegedly operated a slush fund of … [Read more...]

South Korean firm probed for slush fund allegations in Vietnam projects

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The Ho Chi Minh City-Long Thanh-Dau Giay Expressway, one of the projects built by South Korea's POSCO Engineering & Construction Co. Photo: Diep Duc Minh South Korean authorities are investigating alleged slush fund operated by executives of POSCO Engineering & Construction Co. (POSCO E&C) in expressway projects in Vietnam, local media reported. Chung Joon-yang, POSCO Group’s former chairman, and several former and imcubent executives have been banned from leaving the country since mid-March as investigations are ongoing, the Korea Times reported. According to prosecutors, some POSCO E&C executives in charge of projects in Vietnam allegedly created slush funds worth 10 billion won (US$8.9 million) by inflating the costs of building ODA-funded expressways in Vietnam from 2009 to 2012 in collusion with local subcontractors. The company said it had detected the funds during its own inspection earlier and took disciplinary action against those involved, saying the … [Read more...]

Lotte buys into Diamond Plaza

The Diamond Plaza building in downtown HCMC. Lotte Group has acquired 70% of the Diamond Plaza project - PHOTO: HUNG LE

Hung Le A source from Lotte confirmed the deal when reached by the Daily. The group’s chairman Shin Dong Bin mentioned the acquisition of the Diamond Plaza at a meeting with HCMC chairman Le Hoang Quan at City Hall on Wednesday. Shin said Lotte has joined the management of the Diamond Plaza after acquiring 70% of the project. However, he did not reveal the amount of money the group had spent on the deal. The Diamond Plaza was inaugurated in August 2000 with 22 floors, including two basements. The building, which overlooks the landmark Notre Dame Cathedral in HCMC’s District 1 and had an initial investment of some US$60 million, was the joint venture between Construction Corporation No. 1 (CC1) and Posco Engineering & Construction Co. (Posec) under Posco Group. A source from the HCMC Department of Planning and Investment told the Daily that this agency has not received a request for change of the foreign partner in the joint venture as required by the relevant … [Read more...]

Lotte buys controlling stake in Ho Chi Minh City’s Diamond Plaza: media

The 20-story building is now operated by a joint venture between Vietnam’s Construction Corporation No.1 (CC1) and Lotte, instead of the Posco Engineering & Construction Co. (POSEC),

South Korean conglomerate Lotte has replaced a compatriot company in the joint venture that owns the Diamond Plaza trade center in downtown Ho Chi Minh City, a Vietnamese newswire reported Thursday. The Saigon Times Online quoted Lotte’s chairman Shin Dong Bin as saying on Wednesday. Shin revealed the move during a meeting with Ho Chi Minh City’s chairman Le Hoang Quan, where they discussed several investment plans, including the construction of a US$2 billion Eco Smart City, the South Korean company is eying in the southern Vietnamese metropolis. In August 2000 CC1 and POSEC, a subsidiary of South Korean steel making giant POSCO, inaugurated the $60 million Diamond Plaza in one of the prime locations in District 1. The complex of office buildings, apartments, and trade centers is situated at the Le Duan – Pham Ngoc Thach intersection, facing the back of the iconic Saigon Notre-Dame Basilica. The prime location enables Diamond Plaza to attract famous brands … [Read more...]

Ho Chi Minh City wastewater treatment plant receives $130mn upgrade

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Ho Chi Minh City last week started work on an expansion project that will turn one of its two wastewater treatment plants into the largest of its kind in Southeast Asia. The groundbreaking ceremony for the $130 billion project was held at the Binh Hung Sewage Treatment Plant on Saturday last week, one of the contractors said Tuesday on its website. The multibillion-dollar contract was awarded to a three-company consortium of POSCO Engineering & Construction, Ltd., Hitachi, and OTV, the latter’s parent company, Veolia Environnement S.A, said in a press release. POSCO E&C is a leading South Korean construction company, whereas the Paris-based Veolia operates in the fields of water supply and management, waste management, energy and transport services. The project, developed by the city’s Urban Civil Works Construction – Investment Management Authority, is funded by loan assistance from the Japanese government. The project aims to improve Ho Chi Minh … [Read more...]

HCM City expands wastewater treatment plant

The Ho Chi Minh City Urban Civil Works Construction Investment Management Authority has started work on a package to improve HCM City's urban and domestic sanitation by expanding the daily capacity of a large-scale Binh Hung sewage treatment facility from 141,000 to 469,000 cubic metres. The expanded capacity will be sufficient to meet wastewater treatment needs of about 1.4 million people, and will make the plant one of the largest sewage treatment facilities in Southeast Asia. The package belongs to the second phase of a project to rehabilitate the HCM City water environment in a basin area of 2,150ha along Tau Hu, Ben Nghe, Doi and Te canals in districts 4,5,6, 8, 10 and 11. The contract for the plant expansion was awarded to a three-company consortium represented by POSCO Engineering & Construction, Ltd., a major construction company from the Republic of Korea, Hitachi, and OTV, a subsidiary of Veolia Water Solutions & Technologies, a French environmental services … [Read more...]

City expands large wastewater treatment plant

The ground-breaking ceremony to the Binh Hung Sewage Treatment Plant expansion project was kicked off to improve the HCM City water environment. — VNS Photo

HCM CITY (Biz Hub) — The HCM City Urban Civil Works Construction Investment Management Authority has started work on a package to improve HCM City's urban and domestic sanitation by expanding the daily capacity of a large-scale Binh Hung sewage treatment facility from 141,000 to 469,000 cubic metres. The expanded capacity would be sufficient to meet wastewater treatment needs of about 1.4 million people, and would make the plant one of the largest sewage treatment facilities in Southeast Asia. The package belongs to the second phase of a project to rehabilitate the HCM City water environment in a basin area of 2,150 ha along Tau Hu, Ben Nghe, Doi and Te canals in districts 4,5,6, 8, 10 and 11. The contract for the plant expansion was awarded to a three-company consortium represented by POSCO Engineering & Construction, Ltd., a major South Korean construction company, Hitachi, and OTV, a subsidiary of Veolia Water Solutins & Technologies, a French environmental services … [Read more...]

Construction starts on Nam Lik 1 hydroelectric power plant

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(VOV) -Construction on the US$124 million Nam Lik 1 hydroelectric power plant got underway on July 9 following more than one year of design preparation. VND520 billion for Song Lo 3 hydroelectric power plant Son La hydroelectric power plant in operation US$400 million to build Trung Son hydroelectric power plant … [Read more...]