Prime Minister Nguyen Xuan Phuc has asked the Ministry of Transport to reassess costs and capital sources for two metro lines in Ho Chi Minh City and to submit the report to the city.
At a recent meeting on the first metro line Ben Thanh – Suoi Tien and second line Ben Thanh-Tham Luong, the Government Office said the new assessment must be based on the city’s commitments and advice from concerned ministries.
The Ministry of Transport has also been asked to establish a specialists’ group of concerned ministries and agencies to ensure strict compliance with current laws and policies.
After agreement about capital sources from the Ministry of Planning and Investment, the Ministry of Transport will report to the National Assembly on behalf of the government.
Previously, the PM assigned the Ministry of Planning and Investment to work with the Ministry of Finance and Ministry of Transport to create a funding plan for the metro lines.
The two projects have run behind schedule because of a capital shortage, according to the Ministry of Transport.
The metro line No 1 from Ben Thanh in District 1 to Suoi Tien Theme Park in District 9 was approved by the city in April 2007, with an initial investment of VND17.4 trillion ($766.4 million).
That figure has increased to VND47 trillion ($2.07 billion) because of changes in design and the exchange rate.
The developer has also been late in paying contractors, and may have to pay interest on late payments.
To ensure the completion schedule, Ho Chi Minh City has offered the Ministry of Planning and Investment advance disbursement for metro line 1 while waiting for the NA’s approval.
More than half of the work on the project has been completed, and disbursement has topped 30 per cent.
Meanwhile, investment capital for the second metro line Ben Thanh-Tham Luong also increased, from VND26 trillion ($1.14 billion) to VND48 trillion ($2.11 billion), after the completion deadline was extended from 2020 to 2026.
Source: VNA
