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HCMC to propose establishment of Metro Line No.1 Company

Released at: 16:36, 12/12/2014

HCMC to propose establishment of Metro Line No.1 Company

City seeks PM approval to establish company, which is needed for operations and management.

by Huyen Thanh

The Ho Chi Minh City People’s Committee is to submit a report to the Prime Minister on the establishment of the Metro Line No. 1 One-Member Company Limited. The People’s Committee said that, according to the minutes of a previous meeting, the Japan Bank for International Cooperation (JBIC) and the government had discussed “for at least three years that the operation of Metro Line No. 1 required the establishment of a unit/company for operations and maintenance.” Its establishment is needed under the terms of the ODA loan from JBIC. 

According to the People’s Committee, under the plan for operating Metro Line No. 1, expected in late 2018, the establishment of a company for maintenance and operations is needed from this year to prepare human resources and technical conditions to ensure the project’s safe operation. At the same time, the early establishment of the company will facilitate cooperation with a construction consulting unit to implement the program for employee recruitment and technology transfer for completing the organizational structure and the human resources to receive the completed project, as this is the premise for the management and operation of subsequent metro lines

The company will be a one member limited company, 100-per-cent State-owned with charter capital of VND14 billion ($65,000) in 2014-2017 and more than VND16.7 billion ($77,674) from 2018, and be owned by the Ho Chi Minh City People’s Committee. The People’s Committee also recommended that the Ministries of Home Affairs, Planning and Investment, Transportation, Finance, and Labor, Invalids and Social Affairs send comments on the establishment of the company to the People’s Committee. The People’s Committee would then complete its report to the PM.

Construction of the Ben Thanh - Suoi Tien Metro Project (Line No. 1), with total capital of $2.49 billion, began in August 2012. The line has a length of nearly 20 km, passing through Districts 1, 2, 9, Binh Thanh, and Thu Duc in the city and Di An district in Binh Duong province. About 2.6 km is underground, with three stations, and more than 17 km is elevated track, with eleven stations. The metro line is expected to be completed in 2019 and put into operation in 2020.

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