HCM City continues seeking funds for Metro Line 1

The authorities in HCM City have asked the prime minister to advance more money to pay contractors and ensure the progress of the construction of the city’s Metro Line 1 project.

The authorities in HCM City have asked the prime minister to advance more money to pay contractors and ensure the progress of the construction of the city’s Metro Line 1 project.

 

HCM City continues seeking funds for Metro Line 1 

HCM City Chairman Nguyen Thanh Phong has signed an urgent document to ask the prime minister to give the city over VND2trn (USD85.5m) in advance to pay foreign contractors to avoid lawsuits and ensure that the project will not stagnate. If the government can't provide financial support, HCM City People's Committee asked the prime minister to let it use the city's budget.

The metro line has been built from the official development assistance (ODA) source from the central government and reciprocal capital from the city budget.

According to the plan, the city will be given VND7.5trn (USD320m) from 2016 to 2020. In 2016 and 2017, the city received over VND2.7trn. However, the cost of the project increased last year so the plan had to be readjusted. No funding is allocated to the HCM City's Metro Line 1 project in the state budget investment plan for 2019 by the Ministry of Planning and Investment.

HCM City’s metro lines are facing various issues with procedures, disbursement, and cost overruns. The city had to pay in advance with their own budget multiple times.

Meanwhile, the HCM City Urban Railway Management Board is also seeking VND39bn (USD1.6m) to pay employee wages and bonuses. According to the HMC City Urban Railway Management Board, their employees have only received basic wages since January 31.