HCMC meets requirement for loan disbursement extension for second metro line
The Saigon Times
|Workers clear the site for the second metro line project in HCMC. The HCMC government has affirmed that it met the requirement to extend the loan disbursement deadline for the second metro line project in the city – PHOTO: TNO|
HCMC – The HCMC government has written to the Ministry of Finance, affirming that it met the German Development Bank’s (KfW) requirement to extend the deadline to disburse a loan of 240.75 million euros (US$288 million) for the city’s second metro line project and adjust the time to pay off the loan.
According to the city, it signed two agreements with KfW on the loan in 2011, the local media reported.
In 2019, when the project’s completion deadline was adjusted, the city proposed the bank extend the deadline to disburse the loan to 2026 and that it would start paying the loan from 2027.
However, KfW said it could extend the loan disbursement deadline to the end of December 2024. It would continue extending the deadline in accordance with the reality and the project’s progress.
As for the requirement for the deadline extension, the Management Authority for Urban Railways (MAUR) of HCMC must sign an appendix with the consulting firm of the project, Implementation Consultant (IC), or work out an alternative plan to ensure consultancy for the project.
MAUR has worked with IC on the appendix many times but IC asked the city to make payments for incomplete items and those ineligible for payment and the workload in signed appendices to continue its consultancy for the project.
According to the municipal government, it could not meet IC’s requirement as the requirement went against regulations on contract management. As a result, the two sides could not reach a consensus.
MAUR later held a meeting with other sponsors to replace IC.
The metro line project was designed to be 11.2 kilometers and pass through districts 1, 3, 10, 12, Tan Binh and Tan Phu. Its investment was estimated at VND47.8 trillion.
The project includes seven main packages from CP1 to CP7, of which the CP1 to build an office building and auxiliary items at the Tham Luong Depot has been completed, while tenders for the six others have yet to be held.
Work on the project was planned to start in 2022 and be completed in 2026.