On 07 December, Mr.Tran Ngoc Thoi -Vice Chairman of the provincial People"s Committee - had a meeting with Mr. Joris M.Janse, Director of Orio program – The Netherlands on two projects: Rural Clean Water and Phu My new urban drainage collection and treatment in the province funded by the Dutch Government via the grant assistance.

At the meeting, the two sides exchanged views on difficulties and problems in the two projects. Specifically, problems in the application form specified for bidding packages of equipment supply and calibration after installation for rural water projects in Ba Ria - Vung Tau. In compliance with the Bidding Law, bidding packages for procurement of equipment worth over VND5 billion must apply the bidding contractor selection. Therefore, the provincial People’s Committee required the sponsor and investor to have official standpoints with the Ministry of Planning and Investment on the selection of contractor appointment for equipment package and putting this content into the financing agreement signed for the project implementation. It is known that previously, the signed financing agreement had no mandatory tender or appointment.

In particular, the Phu My new urban drainage collection and treatment project (Tan Thanh district) is currently facing difficulties because of the higher total investment as compared with earlier. According to the explanation of Ba Ria - Vung Tau Urban Sewerage and Development One Member Limited Company (Busadco), the rise is caused by the total investment capital increased by 7%, service charges incurred EUR1.5 million, the cost of raw materials increased by 7 %, and the EUR exchange rate against the USD fell by 6%. Besides, in the original funding profile excluded VAT, inflation and debt reserve.

Concluded at the meeting, Mr. Tran Ngoc Thoi said that the provincial People’s Committee would work with the Ministry of Planning and Investment to make the bidding form suitable for the rural clean water projects. Particularly, the wastewater treatment project in Phu My, Busadco was proposed to complete and submit the documents to the provincial People’s Committee, strive to re-inform the sponsors in December - 2012.