Use state budget for second Hanoi metro line's extra costs: PM

By Duc Tri, Thai Ha
Mon, August 8, 2022 | 2:21 pm GTM+7

Prime Minister Pham Minh Chinh has asked relevant agencies to seek state budget funds for extra costs incurred in the Nhon-Hanoi Station metro line, instead of official development assistance (ODA).

A section of the Nhon-Hanoi Station railway project, Hanoi's second metro line. Photo courtesy of Vietnamnet.

A section of the Nhon-Hanoi Station railway project, Hanoi's second metro line. Photo courtesy of Vietnamnet.

At a Sunday working meeting on removing obstacles for the delayed project, the PM said getting additional ODA funds would require completing many complicated procedures involving many kinds of foreign currencies, different donors from different countries, and fluctuations in exchange rates.

The Hanoi Urban Railway Management Board (MRB) had proposed in May that the Nhon-Hanoi Station railway project be delayed for seven years and an extra capital expenditure of over $212 million be approved.

Work on the city's second metro project started in 2009 and was originally scheduled for completion in 2022.

According to the new proposal, the elevated section will become operational in 2022 and the full route in 2027, with warranty and payment settlement completion in 2029. The MRB also asked for the total project investment be increased to VND34,532 billion ($1.49 billion).

The PM said the investor, Hanoi authorities, consultants and contractors were responsible for the delays. He said project coordination has not been efficient and problems were not addressed in time.

Chinh asked for the elevated section to be completed by the end of 2022 and for the time taken for the underground section be half of what the project consultants have proposed.

The Nhon-Hanoi Station project, kicked off in September 2010, is just 75% complete, it has been reported.

The route is 12.5 kilometers long. It has eight elevated and four underground stations. The 8.5-kilometer elevated section will run from Nhon in Bac Tu Liem district to Cau Giay district and the four-kilometer underground section from Cau Giay district to Hanoi Railway Station in Dong Da district.

The project is being funded with ODA from the French government, French Development Agency, Asian Development Bank, European Investment Bank and domestic counterpart funds.

According to a representative of the MRB, the project faces five major challenges. First, equipment contracts have seen both implementation time and costs extended due to the impact of the Covid-19 pandemic, which delayed and disrupted manufacturing and importing of equipment and prevented the travel of specialists from Europe. Other problems include site clearance and disputes with international contractors due to delays.

Comments (0)
  • Read More
Parliament to discuss amended oil & gas law, anti-money laundering bill

Parliament to discuss amended oil & gas law, anti-money laundering bill

The National Assembly, Vietnam’s parliament, is scheduled to pass seven draft and amended laws at its October-November session, including an amended oil & gas law and one on money laundering.

Politics - Wed, September 28, 2022 | 8:38 am GTM+7

Ministry seeks PM nod for Vietnam’s first cargo airline

Ministry seeks PM nod for Vietnam’s first cargo airline

The Ministry of Transport has asked the Prime Minister for permission to grant a license to the country’s first cargo airline, IPP Air Cargo.

Industries - Tue, September 27, 2022 | 10:45 pm GTM+7

Son Kim to issue $21 mln bonds for HCMC office project purchase

Son Kim to issue $21 mln bonds for HCMC office project purchase

Son Kim Real Estate Investment JSC planned a private placement of bonds worth VND500 billion ($21 million) late this month to purchase The METT office project in Ho Chi Minh City's Thu Thiem new urban area.

Finance - Tue, September 27, 2022 | 10:27 pm GTM+7

Vietnam GDP growth to reach 7.2%, top Southeast Asia: WB

Vietnam GDP growth to reach 7.2%, top Southeast Asia: WB

Vietnam's economic expansion can hit 7.2% this year and 6.7% next year, the highest in Southeast Asia, the World Bank says Tuesday.

Economy - Tue, September 27, 2022 | 9:45 pm GTM+7

Deputy PM’s assistant arrested in pandemic repatriation scandal

Deputy PM’s assistant arrested in pandemic repatriation scandal

Nguyen Quang Linh, assistant to Standing Deputy Prime Minister Pham Binh Minh, was arrested Tuesday for allegedly accepting bribes related to repatriation of Vietnamese citizens during the pandemic crisis.

Politics - Tue, September 27, 2022 | 5:06 pm GTM+7

FPT, VinFast join global chip supply chain

FPT, VinFast join global chip supply chain

Vietnamese giants FPT and VinFast are entering the world's semiconductor industry amid a global shortage of this critical part in automobile and electronics manufacturing.

Industries - Tue, September 27, 2022 | 4:15 pm GTM+7

Becamex, India industry confederation sign cooperation agreement

Becamex, India industry confederation sign cooperation agreement

Becamex IDC and the Confederation of Indian Industry (CII) have signed an agreement on partnership in the areas of IT, medical care, electronics, sustainable development and innovation.

Companies - Tue, September 27, 2022 | 3:27 pm GTM+7

Bamboo Capital to sell luxury properties in foreign markets

Bamboo Capital to sell luxury properties in foreign markets

BCG Land and Helios have signed strategic agreements with 13 top realty consultants to distribute properties of their King Crown Infinity project in both domestic and foreign markets.

Companies - Tue, September 27, 2022 | 3:26 pm GTM+7

Gov’t proposes unique tax incentives for Buon Ma Thuot businesses

Gov’t proposes unique tax incentives for Buon Ma Thuot businesses

The government has proposed to the National Assembly unique tax incentives for businesses in some prioritized sectors in Buon Ma Thuot, the biggest town in Vietnam's Central Highlands.

Industries - Tue, September 27, 2022 | 2:45 pm GTM+7

New US corporate client to buy Boviet Solar’s solar panels

New US corporate client to buy Boviet Solar’s solar panels

U.S. renewable energy developer Vesper Energy has signed a deal to buy 861-megawatt solar modules from Vietnam-headquartered manufacturer Boviet Solar.

Energy - Tue, September 27, 2022 | 11:34 am GTM+7

Public investment disbursement hits $10.3 bln, 46.7% of plan

Public investment disbursement hits $10.3 bln, 46.7% of plan

The disbursement of public investment reached VND243,148 billion ($10.25 billion) in the first nine months of the year, or 46.7% of the government's nine-month plan.

Economy - Tue, September 27, 2022 | 11:12 am GTM+7

Vietnam car buyers charged thousands of dollars above sticker prices

Vietnam car buyers charged thousands of dollars above sticker prices

Several Ford, Hyundai and Toyota dealers in Vietnam are shocking customers by charging them thousands of dollars more than the sticker price, citing cost of accessories.

Companies - Tue, September 27, 2022 | 10:05 am GTM+7

Typhoon Noru forces closure of 5 central Vietnam airports

Typhoon Noru forces closure of 5 central Vietnam airports

Typhoon Noru, one of the biggest to hit Vietnam in 20 years, has forced five airports in the central region to suspend operations for at least 24 hours, starting Tuesday.

Travel - Tue, September 27, 2022 | 9:22 am GTM+7

Standing deputy PM’s assistant faces disciplinary action in pandemic repatriation scam

Standing deputy PM’s assistant faces disciplinary action in pandemic repatriation scam

The Central Inspection Committee has proposed the Party Central Committee’s Secretariat considers disciplining Deputy Foreign Minister To Anh Dung and Nguyen Quang Linh, assistant to the Standing Deputy Prime Minister.

Politics - Mon, September 26, 2022 | 8:06 pm GTM+7

VN-Index plunges amid global downturn

VN-Index plunges amid global downturn

Vietnam’s benchmark VN-Index dropped Monday by nearly 30 points on massive selling driven by global market downturn and the State Bank of Vietnam’s deposit rate ceiling hike.

Finance - Mon, September 26, 2022 | 5:32 pm GTM+7

HCMC office market maintains momentum, awaits new supply

HCMC office market maintains momentum, awaits new supply

Ho Chi Minh City’s office market has recorded robust leasing transactions across all sub-markets this third quarter, thus keeping healthy performance, property services firm Knight Frank said Monday.

Real Estate - Mon, September 26, 2022 | 4:53 pm GTM+7