The government has given approval for the delay of the progress of metro line 2 in Ho Chi Minh City in order to allow time for the city to find a new consultant.
Deputy Prime Minister Tran Luu Quang has decided that the Ben Thanh-Tham Luong route is now planned to be “basically completed” in 2030, instead of 2026, with an official opening date of 2032. The decision has been made to give the city time to find a new consultant and to renew loan agreements with foreign banks that financed the project.
Originally scheduled for completion in 2016, the 11km line between District 1 and District 12 has faced multiple delays, and construction only started last year. The HCMC Urban Railway Management Board (MAUR), which manages metro projects in the city, failed to compensate families affected by the construction, citing disagreement with the government in some districts. MAUR also failed to renew the independent consulting contract for the project, causing delays in spending.
The line initially consisted of a consortium of three German companies, one Swiss company, and one Vietnamese company with agreements to provide engineering, design, and supervision services. These services cost nearly $52.4 million, financed by a grant provided by the German state development bank KfW. The deal ended in March after both sides failed to agree on an extension. The group started in 2012 but stopped in 2018 after a dispute over fees. MAUR said it had not resumed the deal after the consulting firm demanded almost 29%, or 12.6 million euros, more than the amount originally agreed. The two sides held several rounds of negotiations but failed to reach an agreement.
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This New Map of Every Planned Saigon Metro Line Will Leave You DroolingMAUR is currently inviting construction contractors to start work in 2025 and complete the project in 5 years. The initial $1.3 billion price tag for the project spiked to $2.1 billion by the end of 2019 due to rising construction and material costs. The delay has resulted in the expiration of five loan contracts for the project from KfW, the Asian Development Bank, and the European Investment Bank. The city must now renew its contracts with the banks.
In addition to line 2, metro line 1, which runs from District 1 to Thu Duc City, is also behind schedule. Originally set to be completed in 2018, it is now set to go live later this year.
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Source: Vietnam Insider