VietNamNet Bridge – HCM City authorities have asked the Government to consider allowing the city and provincial level administrative agencies to approve metro projects to ensure that construction remains on schedule.

An elevated section of HCM City’s Ben Thanh – Suoi Tien metro line runs along the Sai Gon River. — VNA/VNS Photo An Hieu

In a report sent to the Ministry of Transport on the city’s railway development over 10 years, Tran Vinh Tuyen, vice chairman of the city’s People’s Committee, said that ministries required a lot of time to screen and approve the list of metro sponsors before sending it to the Prime Minister.

He said that, by the time the construction starts, the design and total investment costs must be adjusted to fit the new situation.

Vietnamese regulations on the use and management of official development assistance (ODA) funds and preferential loans are different from those of international funding sponsors for metro projects.

As such, every adjustment needs to be discussed and approved by the sponsors, which further delays the project.

The city metro lines, which are huge billion-dollar projects, have to go through different levels of approval, which also lengthens the process.

The city’s plan calls for eight metro lines with a total length of 220km at a cost of US$25 billion; six bus rapid transit (BRT) routes with a total length of 100km at a cost of $1 billion; and three tramway or monorail routes.

Fifty-three per cent of the work on metro line No 1 (Ben Thanh – Suoi Tien route) has been completed. It is expected to open for operation sometime in 2020.

Metro line No 1 was approved by the city in April 2007 with an investment of VND17.4 trillion ($766.4 million). After investment costs were re-calculated by consulting agencies, costs rose to more than VND47.3 trillion.

The cost adjustment has been submitted to the National Assembly for approval.

HCM City authorities attributed the rising costs to price changes for construction materials, an increase in the minimum wage, and the depreciation of the Vietnamese dong and Japanese yen, among other reasons.

As for metro line No 2, which connects Ben Thanh Market in District 1 with Tham Luong in District 12, the city People’s Committee in 2010 approved a design by a local consulting firm with a total investment of $1.37 billion.

However, after the completion deadline was extended from 2020 to 2026, investment capital needed for metro line No 2 rose, from VND26 trillion to nearly VND48 trillion.

Source: VNS