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Ho Chi Minh City Chairman ‘called for help’ from the central government about Metro

Ho Chi Minh City Chairman 'called for help' from the central government about Metro 2

Ho Chi Minh City Chairman ‘called for help’ from the central government about Metro

This urgent document was also sent to the Prime Minister by Chairman of Ho Chi Minh City People’s Committee Nguyen Thanh Phong, proposing to work with the Central Government before October 11, to resolve the appraisal of capital sources and the ability to balance adjusted capital of the Government.

Previously, according to instructions from the Ministry of Planning and Investment, the city evaluated the entire project implementation situation;

Metro Line No. 1 has completed 67%, expected to be completed by the end of 2021. Photo: Huu Khoa.

According to Mr. Phong, if the adjusted approval procedures are not completed in time for November, contractors who are slow to be paid will be at risk of stopping or delaying construction progress, and even causing disputes and lawsuits with contractors.

Similarly, Metro Line No. 2 is in the bidding stage to select a construction contractor in parallel with the project adjustment process.

Ho Chi Minh City People’s Committee is also concerned that the two Metro projects will continue to be delayed, which will negatively affect diplomatic relations between Vietnam and foreign countries sponsoring the projects.

`With the urgent request mentioned above, the People’s Committee of Ho Chi Minh City recommends that the Minister of Planning and Investment pay special attention and arrange to chair a working session with the Minister of Finance and representatives of other agencies.

Ho Chi Minh City Chairman 'called for help' from the central government about Metro

Metro section near Suoi Tien (District 9) in August 2019.

Metro Line No. 1 project (nearly 20 km long) was approved by the People’s Committee of Ho Chi Minh City in 2007 with a total investment of 17,400 billion VND, and in 2010 it was re-approved on the basis of design adjustments plus rate changes.

Metro Line No. 2 (11.3 km long) has a total investment changed from VND 26,000 billion to VND 48,000 billion after calculation.

On September 21, Ho Chi Minh City People’s Committee also proposed that the Ministry of Finance allocate 3,700 billion VND of undisbursed ODA capital from the Central budget in 2019 to Ho Chi Minh City to ensure project progress and avoid complaints from the government.

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