HCMC ADVANCE BUDGET OVER 1,173 BILLION REPAYMENT METRO CONTRACTOR

On October 26^th, HCM City Railway Authority said that the HCM City People’s Committee approved an advance of more than VND 1,173 billion of a budget for repayment of the Ben Thanh – Suoi Tien metro contractor in the waiting time for the central government to complete the ODA funding plan.

You can read more information at Vietnam Real Estate Market

Accordingly, the City People’s Committee assigned the Department of Finance to assume the prime responsibility and coordinate with the related agencies to arrange capital sources to meet the project.

Previously, the Urban Railway Management Board has written the paper to advance VND 1,173 billion for payment to contractors in September and October.

According to the Urban Railways Management Board, in 2017 the demand for capital to build the metro No. 1 is VND 5,442 billion, now has been allocated VND 2,119 billion, met 36% and lacking VND 3,303 billion.

For the medium term capital from 2016 to 2020, the demand for capital for the metro project No. 1 is VND 20,930 billion, now has been allocated VND 7,500 billion, met 39% and lacking VND 13,430 billion.

Advance payment of wages

This is the third time the City Railways Management Board has to apply for a loan to pay the contractor. By the end of 2016, TP will advance about VND 600 billion for city contractors to pay for workers, material suppliers…

See more information at Vietnam Real Estate Investment

By July this year, the metro line 1 continued to owe the contractor more than VND 500 billion; the contractor had sent a letter requesting a stretch of schedule and could fire the worker if the city does not pay the amount. In the urgent situation, at the end of August, the city continued to advance 500 billion to pay debts.

Although the Prime Minister issued Decision No. 1292 on the allocation of central budget capital in 2017 phase 3, however, the project has not been allocated capital yet.

According to the HCM City People’s Committee, budget-advancing is only a temporary solution. If this situation lasts, it will seriously affect the progress of the project, because the city budget cannot be advanced forever.

You are reading the article “” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/
All information sharing, feedback please email to contact.vietnamrealestate@gmail.com, Hotline (+84) 898 898 688 (24/7).
Thank you for visiting our website!