Higher costs and line adjustments cited as reasons for increase against original plan.
The total investment in Ho Chi Minh City’s Metro Line No. 5 (first phase), has increased by $537.63 million compared to the estimate submitted in 2010, from $939.96 million to $1.48 billion.
Project funding has come from ODA loans and concessional loans from Spain, of $309.95 million, the Asian Development Bank (ADB), of $535.37 million, the European Investment Bank (EIB), of $169.02 million, and the KfW Banking Group, of $225.42 million, together with reciprocal funding of $236.69 million from the Vietnamese Government.
The total investment does not include compensation for land clearance, land acquisition and resettlement, which is expected to be around $315.795 million.
Mr. Huynh Hong Thanh, Director of the Management Board No.5 (of the Management Board of Ho Chi Minh City Metro Lines) explained that the $939.961 million figure in the 2010 proposal was only an estimate and was determined without detailed research.
The $537.63 million increase is mainly for recalculations of labor, equipment and supply costs, which have increased in recent years.
Other adjustments have also been made to the project, with the length of its underground stretch being increased by 1.45 km (from 6km to 7.45km), and the addition of an underground station in Bach Dang Street.
Metro Line No. 5 (first phase) is being carried out over a period of eight years, from 2015 to 2023. It is the half-ring metro line surrounding the city’s CBD. It connects passengers with Metro lines No.1, No. 2, No. 3a, No. 3b and No.4, allowing passengers to move quickly and conveniently from the suburbs to the city center.
The line plays an important role in shaping the urban railway system in Ho Chi Minh City, along with lines No.1 and No.2. It will mark a significant step in the development of urban living and help resolve the traffic jams plaguing the city.