An elevated section of HCM City’s metro line No 1 from Ben Thanh in District 1 with Suoi Tien Theme Park in District 9. (Photo: VNA) HCM City (VNA) – Ho Chi Minh City’s authoritieshave asked the National Assembly (NA) to increase investment for the city’sfirst two metro lines that start near Ben Thanh Market in District 1 and end atSuoi Tien Theme Park in District 9 and Tham Luong depot in District 12.
The municipal People’s Committee has proposed an adjustedtotal investment of 47.3 trillion VND (2.08 billion USD) and nearly 48 trillionVND (2.11 billion USD) for metro line No. 1 and No. 2, respectively.
Metro line No 1 (Ben Thanh in District 1 to SuoiTien in District 9) was approved by the city in April 2007 with an investmentof 17.4 trillion VND (766.4 million USD). Approval by the NA was not needed atthat time.
After investment costs were re-calculated byconsulting agencies, costs increased to more than 47.3 trillion VND.
The city administration attributed the risingcosts to price changes for construction materials, an increase in the minimumwage, and the depreciation of VND and Japanese yen, among others.
In August 2011, the PM agreed to the city’sproposed project adjustments. But with investments reaching more than 47.3trillion VND, the NA then had to approve the amount.
According to the city’s People’s Committee, thecity has signed three loan agreements worth 31.2 trillion VND, of which 11.929trillion VND has been disbursed, accounting for 38 percent of the total signedloan agreements.
The project has implemented four bidding packages andhas completed around 52 percent of the work on metro No 1, with most of thework on an elevated section and depot at metro No. 1 completed.
As for the metro line No 2, which connects Ben Thanhmarket in District 1 with Tham Luong in District 12, the municipal People’sCommittee in 2010 approved a design by a local consulting firm, with a totalinvestment of 1.37 billion USD.
Meanwhile, investment capital for the second metroline Ben Thanh-Tham Luong also increased, from 26 trillion VND to nearly 48trillion VND, after the completion deadline was extended from 2020 to 2026.
According to the Ministry of Construction andMinistry of Finance, the project needs to be reported to the PM before beingsubmitted to the NA for approval.
The city People’s Committee said suspension orcancellation of the projects would lower trust among the funding sponsors, andincreased commitment fees for unallocated loans. It would also affect the trustof residents affected by the project.-VNA
VNA
