HCMC proposes PM approval for $93 million advance for first metro line

SGGP
Ho Chi Minh City People’s Committee has proposed the Prime Minister to approve an advance of VND2,158.5 billion (US$93 million) on the central budget to make payment to foreign contractors of the first metro line Ben Thanh-Suoi Tien, announced the committee office yesterday.

HCMC proposes PM approval for $93 million advance for first metro line

The advance aims to pay the debts, prevent lawsuits from occurring and affecting the diplomatic relationship between Vietnam and Japan and continue implementing the project according to committed progress, the office said.
The city will take responsibility to refund the advance after the Ministry of Planning and Investment has capital plan for the project.
In case the central budget is not allocated for the advance, the city suggested the PM to permit it to advance on the city budget with the total amount of VND2,158.5 billion.
According to the city People’s Committee, Ben Thanh-Suoi Tien metro line project has been built from official development assistance (ODA) source from the central government and reciprocal capital from the city budget.
In the mid-term capital plan in the phase of 2016-2020, the project is arranged VND7.5 trillion, much lower than the registered demand of VND20.5 trillion. In 2016-2017, the arranged amount totaled VND2,709 billion.
Problems in total investment capital adjustment have caused the remaining amount of VND4,791 billion not arranged for the project in 2018 and 2019 while reciprocal capital has been sufficiently supplied as per suggestion by the project’s investor who is HCMC Urban Railway Management Board.
On December 31 last year, the Ministry of Planning and Investment made Decision No. 2118 on the state budget allocation plan in 2019 without funds arrangement for the project.

By Quoc Hung – Translated by Hai Anh

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