The metro line 1 (Ben Thanh – Suoi Tien) is Ho Chi Minh City’s first metro project. The 19.7km-long project consists of a 2.6km underground section and a 17.1km elevated section, with a total investment of VND 47,757 billion from the Japan International Cooperation Agency (JICA) ODA loans and counter-capital from the city’s budget.
According to the Ho Chi Minh City Urban Railway Management Authority (MAUR), from the project’s approval to November 20, 2024, VND 30,136 billion out of VND 43,757 billion has been disbursed (accounting for 68.87% of the total investment, excluding land clearance costs incurred by the districts along the route).
In 2024, up to November 20, the project has disbursed more than VND 1,128 billion, reaching 25.26% of the 2024 capital plan. MAUR is currently focusing on coordinating with contractors to complete the disbursement process by the end of 2024 as per regulations.
Ben Thanh underground station on Ho Chi Minh City’s metro line 1. Photo: Duy Anh
On November 26, Mr. Phan Cong Bang, Director of MAUR (the investor), signed an urgent document advising the Ho Chi Minh City People’s Committee to report to the Prime Minister on the implementation of the metro line 1 project (Ben Thanh – Suoi Tien).
In case CIENCO4 does not comply, Ho Chi Minh City proposes measures to handle other transport infrastructure projects in which this unit participates, including a temporary ban on bidding in the city.
According to the latest report from MAUR, the construction volume of the Ho Chi Minh City metro line 1 project has reached 100% completion.
Additionally, tasks such as fire protection inspection and acceptance for package CP1b (the underground section from the Opera House station to the Ba Son station), trial run, and inspection and certification of all 17 trains have been completed.
The investor is expediting the remaining tasks, including completing fire protection acceptance and obtaining an environmental permit (expected by December 10), and appraisal and issuance of system safety certification (expected by December 15).
It is expected that on December 20, the State Inspection and Acceptance Council will accept the entire project. The plan is to commercially operate the metro line 1 on December 22.
According to MAUR, despite many advantages, the project continues to face new obstacles. The Sumitomo Mitsui – CIENCO4 Joint Stock Company (the contractor for package CP1a) has not reached an agreement on signing project documents. For instance, the absence of signatures from the CP1a contractor, CIENCO4 Joint Stock Company, on contract appendices (appendix on adjusting the contract implementation period, appendices related to payment and disbursement, and the provision of VAT invoices by the Joint Venture for payment…
According to the journalist’s investigation, this issue has arisen recently. On September 19 and October 22, MAUR worked with representatives of the two members of the contractor joint venture to listen to their opinions, aspirations, and proposals; at the same time, requesting the two units to negotiate and compromise to thoroughly resolve internal disagreements and avoid affecting the overall progress of the project.
On October 24, MAUR sent a dispatch urging the SMC4 Joint Venture and CIENCO4 Joint Stock Company to promptly complete and submit the relevant documents to MAUR by the end of October.
In this document, the investor emphasized that if these documents are not provided on time, they will report to the Ho Chi Minh City People’s Committee, the Ministry of Transport, and even the Prime Minister for further instructions. However, as of the end of November 2024, the issue remains unresolved.
The investor of the metro line 1 project believes that this matter requires strong direction from the State Steering Committee for important national projects in the transport sector.
The investor has proposed to the Ministry of Transport to direct CIENCO4 Joint Stock Company to promptly complete the above documents in November 2024 to ensure the project’s progress.
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