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It Is Proposed To Add VND3,300 Billion To The Metro Project No.1

Metro No.1

The HCM City People’s Committee has proposed the Ministry of Planning and Investment and the Ministry of Finance to consider supplementing ODA funds allocated from the central budget in 2017 for urgent projects with good disbursement progress.

Specifically, additional capital for the construction project Ben Thanh – Suoi Tien urban railway (Metro 1) 3.300 billion; Additional capital for environmental sanitation projects in Ho Chi Minh City – phase 2 is 300 billion. The proposal for additional capital for these two projects has been reported by Ho Chi Minh City People’s Committee in July (metro line No.1 project) and September -2017 (environmental sanitation project).

Metro No.1
Opportunity to suspend Metro 1 project in Ho Chi Minh City

According to the People’s Committee of Ho Chi Minh City, the demand for a capital of the metro project number 1 of the whole 2017 is more than 5,420 billion. However, according to the central budget allocation plan for the project in 2017 only nearly 2.120 billion. Upon receipt of the proceeds, the investor of the project has used up. After that, the city has to advance another 500 billion to pay but still not enough money to pay the contractor.

At the meeting of the Prime Minister Nguyen Xuan Phuc with the HCM City People’s Committee in June 2017, Ho Chi Minh City has proposed the Prime Minister consider advancing more than 3,300 billion in 2017 for the city from the source of medium-term ODA 2016-2020 allocated by the central budget to the metro project No. 1 in order to speed up the progress and completion of the project in 2020 as planned.

Metro No.1
The construction of metro project number 1 Ben Thanh – Suoi Tien

On July 5th, the Government Office notified Prime Minister Nguyen Xuan Phuc’s conclusion on the meeting, in which the Prime Minister agreed to advance ODA as proposed by the City.

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The Prime Minister also assigned the Ministry of Planning and Investment to assume the prime responsibility and coordinate with the Ministry of Finance in specifying and reporting to the Prime Minister before July 30. However, to date, the metro project no 1 has not yet poured more capital. Investors have no money to pay so many contractors are withdrawing experts, equipment, stretch progress, stop construction, even sue the investor.

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It Is Proposed To Add VND3,300 Billion To The Metro Project No.1
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