Ho Chi Minh City has once again proposed a delay in the completion of the Metro Line No. 1 project, pushing the expected finish to the end of the fourth quarter. The city faces mounting challenges and complications, marking yet another setback for the much-anticipated Metro 1 project.
Originally approved in 2007 with an anticipated operational date in 2015, Metro Line No. 1 Ben Thanh – Suoi Tien has seen its launch date pushed back multiple times, with adjustments made in 2011, 2015, 2019, and most recently in 2023, aiming for a fourth-quarter start.
As of June 2024, Metro Line No. 1 has achieved 98% completion, with trains undergoing smooth route testing. This progress has bolstered the confidence of Ho Chi Minh City residents that the metro’s inauguration is imminent.
Despite this optimism, city authorities have now requested a fifth extension to the project’s timeline, delaying operations until the end of 2024—a full nine years behind the original schedule.
The project has been plagued by continuous delays. In 2007, Metro Line No. 1 was greenlit with an investment of over 17,387 billion VND and a 2015 launch target. By 2011, the budget ballooned to 47,325 billion VND, and the operational date was postponed to 2018—marking the first of several delays due to site clearance issues and redesigns for the Ben Thanh underground station to accommodate multiple metro lines.
In September 2019, the Ho Chi Minh City Urban Railway Management Board announced a further delay to the fourth quarter of 2021 due to legal and financial complications and design alterations.
October 2020 saw the arrival of the first train at Long Binh depot when Metro Line No. 1 was over three-quarters complete. This milestone signified a shift from construction to testing and operation phases.
Early in 2021, it became clear that the project would not meet its year-end deadline but aimed for full line testing and commercial operation by Q4/2022. However, two months before this target date, in October 2022, the Ho Chi Minh City People’s Committee sought approval from higher authorities to extend completion to Q4/2023.
The Covid-19 pandemic’s disruption to foreign expert arrivals and material imports was cited as reasons for delays affecting key construction packages CP1a, CP1b, CP2, and CP3 (mechanical and electrical equipment procurement).
This fourth postponement came when the project was at a 92% completion rate. Following approval from relevant authorities, commitments were made to tightly control progress to ensure completion by the end of 2023.
Ho Chi Minh City’s Metro Line No. 1, after several delays, has raised the anticipation of residents eager to experience the city’s first urban railway powered by Japanese technology.
In August 2023, a significant milestone was achieved when Metro Train No. 1 underwent its inaugural full-route test, with the project at 95% completion—a momentous occasion following 11 years of construction.
Yet, the completion schedule has been deferred once more, with the latest proposal pushing the end date to the fourth quarter of 2024. This fifth postponement is attributed to various factors including construction delays, final acceptance, safety certification, operational training, and asset handover at project conclusion.
Experts estimate that each year’s delay in Metro Line No. 1’s progress costs Ho Chi Minh City approximately $1.3 billion due to traffic congestion. The city also faces additional repercussions concerning contract legality and potential litigation with foreign contractors.
The protracted delay in commencing commercial operations of Metro Line No. 1 not only represents a significant resource drain but also hampers the city’s public transport infrastructure development plan. As a pivotal element of this plan, the metro’s efficiency and the investment’s intended outcomes are compromised.
In response, the city is urged to decisively clear legal hurdles, expedite dispute resolution with contractors, and secure resources to meet the newly proposed deadline pending Prime Ministerial approval.
Presently, three lawsuits have emerged between the project investor and main contractors: two involving the Sumitomo – Cienco 6 Joint Venture and one with Hitachi, totaling billions of dong in claims.
To date, an agreement has been reached with the CP2 package contractor (Sumitomo and Cienco 6 Joint Venture), and preparations are underway to finalize an agreement with the CP1b package contractor (Shimizu – Maeda Joint Venture).
For the CP3 package, efforts are being coordinated with the contractor to establish a Dispute Adjudication Board (DAB) to expedite progress on CP3 and training for trial operations.
Related
Source: Vietnam Insider