MPI requests meeting to resolve issues at Nhon-Hanoi Station metro line

Nhon-Hanoi Station metro line is beset by numerous financial issues

The proposal was made as the main contractor Hyundai E&C-Ghella, asked the investor Hanoi Metropolitan Railway Management Board (MRB) to issue a compensation of $114 million for delays in land clearance.

Besides, there is a problem over differences between the terms of the FIDIC contract and Vietnamese laws. The MPI proposed the task force to assign the Ministry of Construction to work with relevant parties to deal with this problem.

The project has completed 74 per cent of construction, with the underground section only 32.2 per cent completed. The construction includes 10 bidding packages, however, eight were forced to be extended.

Regarding the disbursement progress, according to MRB, as of October, VND15.96 trillion ($693.9 million) had been disbursed for the project, including VND1.43 trillion ($62.17 million) in 2021, only 29 per cent of the plan. The reason for delay is that cost estimates were raised by numerous contractors.

The Metro Line 3 connecting Nhon and Hanoi Station will span 12.5km, running through six districts: Nam Tu Liem, Bac Tu Liem, Cau Giay, Ba Dinh, Dong Da, and Hoan Kiem. It will consist of 12 stations, including eight elevated and four underground.

Its investment of about €1.17 billion ($1.33 billion) comes from official development assistance from the Asian Development Bank (ADB), European Investment Bank, the French Development Agency, and loans from the French government.

The railway line was expected to be put into operation in 2021. It will be able to accommodate 8,600 passengers each hour in the initial stage, and then reach 23,900 passengers each hour. It can save 20,000 tonnes of greenhouse gas emissions annually and contribute to the country's climate change fight.