Total investment of Ben Thanh – Tham Luong Metro Project adjusted

The Ho Chi Minh City Management Board of Urban Railway (MAUR) yesterday proposed to HCMC People’s Committee to direct the local authorities of the districts of 1, 3, 10, 12, Tan Binh, and Tan Phu to prepare an adjustment report for the total investment in land clearance task. This report will be submitted to the HCMC Natural Resources and Environment Department for approval soon.

After the report approval, MAUR has a legal basis to carry out necessary steps to adjust the total investment in the construction project  Metro No.2, Ben Thanh-Tham Luong, related to technical infrastructure relocation and other aspect waiting for budget now.

The HCMC Natural Resources and Environment Department should also facilitate the assessment and approval task for land clearance projects in each area.

The HCMC Department of Information and Communications must urgently assess compensation documents for telecoms infrastructure relocation (submitted 4 times by MAUR). Meanwhile, the HCMC Construction Department must assess for approval the documents regarding relocation drainage works, traffic signs, trees, lighting systems, and traffic lights.

MAUR reported that since 2021, the land clearance task saw a slow-down as the land price coefficient in District 3 has not been approved yet, leading to the inability to hand over the land. At present, the proportion of land hand-over only reaches 83.62 percent.

As to the progress of Metro No.1 Construction Project (from Ben Thanh to Suoi Tien), HCMC People’s Committee has already submitted a proposal to the Planning and Investment Ministry about extending the completion time to the end of the fourth quarter in 2023. After the approval by the Prime Minister, HCMC People’s Committee will direct the project investor to finish necessary documents for assessment and approval according to law.

Decision No.4856/2019 states that Metro No.1 Construction Project must be completed in the fourth quarter of 2021. However, until now, the project has only reached 88.5 percent of the workload.

The primary reason is the unexpected outbreak of the Covid-19 pandemic. Adding to that is the prolonged negotiation on the appendix of Contract No.19 (the general consultation contract) between the investor and NJPT Association because of changes in legal regulations and order for the process of preparing, assessing, and approving the cost estimates.

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