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

By Duc Tri, Thai Ha
Mon, August 8, 2022 | 2:21 pm GMT+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
Packaging contractor Sovi to spend $46 mln on relocating one Vietnam factory, expanding another

Packaging contractor Sovi to spend $46 mln on relocating one Vietnam factory, expanding another

Bien Hoa Packaging JSC, widely known as Sovi, will spend VND1,175 billion ($46.23 million) to relocate its plant from a polluting industrial park in the southern province of Dong Nai and expand another in the neighboring province of Binh Duong.

Companies - Mon, November 25, 2024 | 4:14 pm GMT+7

Vietnam-S Korea $77 mln industrial park completes 65% work

Vietnam-S Korea $77 mln industrial park completes 65% work

Sach (Clean) Industrial Park in the northern province of Hung Yen, a $77-million facility invested by Vietnamese and South Korean businesses, has completed full site clearance and 65% of its construction work.

Industrial real estate - Mon, November 25, 2024 | 3:32 pm GMT+7

HCMC Ring Road 4’s first phase to cost $4.83 bln

HCMC Ring Road 4’s first phase to cost $4.83 bln

Total investment for the first phase of Ho Chi Minh City’s Ring Road 4 project is estimated at VND122.77 trillion ($4.83 billion) in a proposal submitted by the city administration to the government.

Investing - Mon, November 25, 2024 | 3:24 pm GMT+7

Foreign chambers of commerce in Vietnam gather to address business challenges

Foreign chambers of commerce in Vietnam gather to address business challenges

Four foreign business associations gathered last week for their monthly meeting to address pressing business challenges in Vietnam.

Companies - Mon, November 25, 2024 | 2:08 pm GMT+7

Thai food giant Charoen Pokphand earns $2.7 bln in Jan-Sept revenue from Vietnam

Thai food giant Charoen Pokphand earns $2.7 bln in Jan-Sept revenue from Vietnam

Thailand’s Charoen Pokphand Foods Public Company Limited (CPF) recorded revenue of THB92,210 million ($2.67 billion) from its Vietnam operation in the first nine months of this year, up 5% year-on-year.

Companies - Mon, November 25, 2024 | 10:35 am GMT+7

Vietnam construction machinery distributor 911 Group has new leader after chair’s death

Vietnam construction machinery distributor 911 Group has new leader after chair’s death

Hanoi-based 911 Group JSC has elected Nguyen Thi Thom as its new chairperson after chairman Luu Dinh Tuan unexpectedly died one day before the firm’s EGM on November 23.

Companies - Mon, November 25, 2024 | 9:37 am GMT+7

Vietnam credits nearly double deposits, pushing up interest rates

Vietnam credits nearly double deposits, pushing up interest rates

Vietnam’s credit expansion has been nearly double deposit expansion, creating pressure on its banking system's liquidity as the year is coming to an end.

Banking - Mon, November 25, 2024 | 8:17 am GMT+7

New mindset key to resolving institutional bottlenecks, promote growth: economist

New mindset key to resolving institutional bottlenecks, promote growth: economist

Moving from a mindset of control to that of promoting growth is key to clear four institutional bottlenecks in the way of national development, says Dr. Nguyen Dinh Cung, former director of the Central Institute for Economic Management (CIEM).

Opinion - Sun, November 24, 2024 | 3:30 pm GMT+7

Low production costs, tax benefits give Chinese goods price advantage in Vietnam

Low production costs, tax benefits give Chinese goods price advantage in Vietnam

Chinese goods entering Vietnam are often cheaper than local products due to low production costs, taxation benefits and shipping subsidies by manufacturers, says Nguyen Thanh Trung, director of Logistics Technology Solutions Company Limited (LTS).

Companies - Sun, November 24, 2024 | 2:00 pm GMT+7

Thailand’s food trade to top THB700 billion next year

Thailand’s food trade to top THB700 billion next year

The private sector is set to propel Thailand towards becoming a global food hub by 2026, with the value of the nation's food trade expected to surpass THB700 billion ($20 billion) next year.

Southeast Asia - Sun, November 24, 2024 | 10:22 am GMT+7

Indonesia plans to cut coal use to 33% of energy mix

Indonesia plans to cut coal use to 33% of energy mix

The Indonesian Government plans to slash the share of coal-fired power generation in the country’s energy mix to just 33%, while increasing the contribution of renewables to 42% by the end of 2040.

Southeast Asia - Sun, November 24, 2024 | 10:19 am GMT+7

Thai Government approves economic stimulus plan

Thai Government approves economic stimulus plan

The Thai Government’s economic stimulus policy committee led by Prime Minister Paetongtarn Shinawatra has approved a five-point plan to boost national economy in both short-and long-terms, the Government House said on Thursday.

Southeast Asia - Sun, November 24, 2024 | 10:16 am GMT+7

Singapore raises forecast for 2024 economic growth to around 3.5%

Singapore raises forecast for 2024 economic growth to around 3.5%

With economic growth in the third quarter of this year exceeding the projected rate, Singapore has raised its growth forecast for the whole year 2024 to around 3.5%.

Southeast Asia - Sun, November 24, 2024 | 10:14 am GMT+7

British oil giant invests in $7 billion gas project in Indonesia

British oil giant invests in $7 billion gas project in Indonesia

UK oil giant BP announced a joint $7 billion project with its partners to exploit nearly 85 billion cubic meters of gas in Tangguh, West Papua province of Indonesia.

Southeast Asia - Sun, November 24, 2024 | 10:12 am GMT+7

Boom expectant securities firms rush to hike capital base

Boom expectant securities firms rush to hike capital base

Many Vietnamese securities companies are rushing to increase their charter capital, anticipating a promising long-term outlook for the stock market.

Finance - Sun, November 24, 2024 | 10:00 am GMT+7

Vietnam sees October surge in car imports from Japan

Vietnam sees October surge in car imports from Japan

Vietnam saw a sharp rise in car imports from Japan in October, particularly in the segment with nine seats or fewer, according to the General Department of Customs.

Economy - Sun, November 24, 2024 | 9:00 am GMT+7