HCM CITY — Prime Minister Nguyễn Xuân Phúc has asked the Ministry of Transport to reassess costs and capital sources for two metro lines in HCM City and to submit the report to the city government.

At a recent meeting on the first metro line Bến Thành-Suối Tiên and second line Bến Thành-Tham Lương, 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 Bến Thành in District 1 to Suối Tiên Theme Park in District 9 was approved by the city in April 2007, with an initial investment of VNĐ17.4 trillion (US$766.4 million).

That figure has increased to VNĐ47 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, HCM 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 Bến Thành-Tham Lương also increased, from VNĐ26 trillion ($1.14 billion) to VNĐ48 trillion ($2.11 billion), after the completion deadline was extended from 2020 to 2026. — VNS