15/11/2019 15:10 GMT+7 Email Print Like 0

Costs for HCM City’s first metro line reduced by 147 million USD

Investment for Ho Chi Minh City’s first metro line between Ben Thanh Market in district 1 and Suoi Tien Theme Park in district 9 will be reduced by 3.4 trillion VND (147 million USD).

The decision was recently made by the municipal People’s Committee after a review of all of the project’s related costs.

It will be submitted to the municipal People’s Council before its issuance of a resolution on allocating reciprocal capital from the city budget at the year-end meeting.

HCM City previously proposed an adjusted total investment of 47.3 trillion VND (2.05 billion USD) and nearly 48 trillion VND (2.07 billion USD) for metro lines No 1 and No 2, respectively.

Vice Chairman of the municipal People’s Committee Vo Van Hoan said although the total investment of the first metro line has been cut significantly, it will not affect the project’s quality. Seventy-five per cent of the total workload has been completed, he added.

Usually, after the municipal People’s Committee signs a decision to adjust the capital of the two metro line projects, the central government will disburse the money. But the procedures for money transfer and payment take time, so the city is expected to receive the money in March or April next year, Hoan said.

The city has advanced a 1.7 trillion VND payment to investors, construction units and labourers so that work on the project can continue.

Metro line No 1 was approved by the city in April 2007 with an investment of 17.4 trillion VND (766.4 million USD). After investment costs were re-calculated by consulting agencies, costs increased to more than 47.3 trillion USD in 2010.

Meanwhile, metro line No 2 connecting Ben Thanh and Tham Luong in district 12 is now scheduled to open in 2026, a two-year delay from its 2024 goal.
VNA/VNP