HCMC continues advancing money to pay metro contractors

The HCMC People’s Committee has accepted to provide VND1.173 billion (US$51.6 million) advance to pay contractors of the first metro line Ben Thanh-Suoi Tien while waiting for the central government to supplement official development assistance funds for the project.
HCMC advances city budget to pay workers
HCMC advances city budget to pay workers
That was announced by the HCMC Urban Railway Management Board yesterday.
According to the board, the HCMC People’s Committee has assigned the Department of Finance to work with relevant agencies to arrange funds for the project.
Previously, the board has sent a document to the committee asking for the advance to pay September and October debts to contractors.
In 2017, the city needs VND5,442 billion ($239.49 million) for construction of the first metro line. Of these, it has received VND2,119 billion meeting 36 percent of the total demand and been short of the remaining amount of VND3,303 billion.
That is the third time which the board must ask for advance to pay contractors. At the end of 2016, the city spent VND600 billion in advance for contractors to pay workers’ wage and material suppliers.
In July, the city continued owing the project’s contractors VND500 billion so they proposed to extend progress and said that they might dismiss workers if the city did not make payment.
Hence HCMC continued providing VND500 billion at the end of August to pay debts.
Although the Prime Minister has issued Decision 1292 on the third capital allocation of the central budget plan in 2017, the project has not received funds.
The city’s budget advance is just a temporary solution to prevent the project from being delayed. If the situation lasts long, it will seriously affect the project’s progress because the city can not keep advancing on its budget.
In related news, the city People’s Committee has assigned District 1 to urgently implement procedures on land withdrawal to hand over premise for construction of Ba Son station to ensure the project’s progress as per commitments with the contractors.

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