HCM City has advanced an additional VND1.2 trillion (USD54.5 million) to pay contractors for the Ben Thanh-Suoi Tien metro project which is facing capital delays.
This is the third time the city has advanced for the project finance while it awaits ODA capital allocation.
Earlier, the city advanced VND500 billion (USD22.7 million) and VND900 billion (USD40.9 million) for the project contractors.
Chairman of the city people’s committee Nguyen Thanh Phong asked the Department of Finance to arrange capital for the project.
Phong also urged District 1 to speed up site clearance to hand over the land for the project implementation.
The HCM City urban railway management board has been required to send a report on the project’s implementation, including the ODA capital allocation from the central budget during the 2016-2020 period.
According to the HCM City urban railway management board, the current ODA for Ben Thanh-Suoi Tien metro project only meets 36% of what is required, a problem attributed to slow ODA disbursement. The project needs around VND21 trillion (USD954.5 million) between 2016 and 2020, but to date, only VND7.5 trillion has been provided.
Ben Thanh-Suoi Tien metro project has a total investment capital of USD2.49 billion. Being started in August 2012, the 20-km route is scheduled for completion in 2020.