Ho Chi Minh City's Metro Line Faces Hurdles Despite 98% Completion

Ho Chi Minh City's Metro Line No. 1, connecting Ben Thanh Market in District 1 to Long Thanh Depot in Thu Duc city, has reached 98% completion according to the Management Authority for Urban Railways (MAUR). However, the project is facing significant obstacles that may prevent it from beginning commercial operation by the end of 2024 as scheduled.

Why this matters: The successful launch of Ho Chi Minh City's first metro line is crucial for thecity's economic growth and urban development, as it will significantly improve transportation infrastructure and reduce traffic congestion. Delays or failures in this project may have far-reaching consequences for the city's reputation and ability to attract investments.

The primary issue stems from ongoing disputes between the project's investor, contractors, and consultants over the handover of equipment and infrastructure necessary for training, acceptance, and trial operation. Despite the high level of overall completion, these disagreements threaten to derail the timeline for the metro line's launch.

In an effort to address these challenges, a task group was established in March to settle difficulties related to the project. The group has held three meetings thus far, but a resolution remains elusive. Chairman of the municipal People's Committee Phan Van Mai has also reached out to the Japanese Ambassador to Vietnam, proposing to resolve disputes through the Dispute Adjudication Board (DAB).

In his letter, Mai stated, "The city will consider the Japanese side's proposal to resolve disputes through the Dispute Adjudication Board (DAB)." The city has also requested that the Japanese side pool all resources to complete the trial operation of bidding package CP3 in May and hand over necessary carriages and equipment.

The Ben Thanh-Suoi Tien metro line, spanning 19.7km with three underground stations and 11 elevated stations, has been under construction since 2012. The project has faced numerous delays over the years, with costs ballooning to over 43.7 trillion VND (1.71 billion USD) from its initial budget.

As Ho Chi Minh City eagerly awaits the completion of its first metro line, the resolution of these disputes and the timely handover of essential equipment will be critical in determining whether the project can meet its revisedtimeline. The city's leadership and the Japanese partners must work together to find a swift and effective solution to ensure the successful launch of this vital transportation infrastructure.

Key Takeaways

• Ho Chi Minh City's Metro Line No. 1 is 98% complete, but faces obstacles to its 2024 launch.
• Disputes between investors, contractors, and consultants are delaying the project.
• A task group was established to resolve issues, but a solution remains elusive.
• The city has proposed using the Dispute Adjudication Board to resolve disputes.
• The project's success is crucial for the city's economic growth and urban development.