Wednesday, December 7 2016

VietNamNews

PM asks HCMC to review metro cost

Update: February, 02/2016 - 10:27
Prime Minister Nguyen Tan Dung has asked the HCM City administration to review and complete a report on adjustments of the Metro Line No. 2 section from Ben Thanh in District 1 to Tham Luong in District 12 as the investment costs have surged by more than 50 per cent. — Photo tinnhanhchungkhoan.vn

HCM CITY (VNS) — Prime Minister Nguyen Tan Dung has asked the HCM City administration to review and complete a report on adjustments of the Metro Line No. 2 section from Ben Thanh in District 1 to Tham Luong in District 12 as the investment costs have surged by more than 50 per cent.

According to the Government Office, the Transport Ministry will report to the National Assembly's Standing Committee.

Meanwhile, the city government will have to seek official development assistance (ODA) loans to finance the additional cost.

The Ben Thanh-Tham Luong metro section is 11.33 kilometres long and was set to be implemented from 2010 to 2018 at a cost of VND26.1 trillion (US$1.3 billion).

The amount included $540 million from the Asian Development Bank (ADB), $313 million from the German Development Bank (KfW), $195 million from the European Investment Bank (EIB) and over $326 million from Viet Nam's reciprocal capital.

However, the project's investments surged by 51 per cent to $2.07 billion last year after design revisions. This amount does not cover Ben Thanh Station and operation and maintenance costs.

The HCM City Management Authority for Urban Railways attributed the mounting investment to inflation ($239.98 million or 17.5 per cent) during the last five years (2010-15), higher prices of materials and wages, and increased workload ($460.32 million or 33.5 per cent).

Due to adjustments for site clearance and compensation for construction of stations, work did not begin on the section's final station and control building until early last year. — VNS

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