Chinese contractor urged to expedite Cat Linh-Ha Dong project

18-Jan-2020 Intellasia | The SaigonTimes | 6:02 AM Print This Post

The Ministry of Transport has asked the general director of China Railway Sixth Group Co., Ltd, the main contractor of the Cat Linh-Ha Dong urban railway project in Hanoi, to come to Vietnam to address the long delays of the project.

The official request was made after the project experienced repeated delays, leading to continued uncertainty over its launch date, the local media reported.

The prime minister had earlier mandated that the project be put into operation only when it was certified as completely safe, stressing that anyone caught violating regulations during the project’s execution must face sanctions, in line with the law.

Therefore, the Ministry of Transport has asked the Chinese contractor to work out solutions to the slow progress of the project and issue a deadline for its completion.

According to the ministry, the contractor must take responsibility for the slow progress and cost overruns plaguing the Cat Linh-Ha Dong urban railway project. It has failed to fulfill its duties under the engineering, procurement and construction contract.

The 13.05-kilometer Cat Linh-Ha Dong urban railway was designed to have 12 stations and one depot.

The funding needed for the railway project has surged from the initial estimate of VND8.7 trillion in 2008 to a staggering VND18 trillion, including VND13.9 trillion borrowed from the Chinese government and VND4.1 trillion in reciprocal capital.

Work on the project started in October 2011, and the railway was first scheduled to be put into commercial operation in 2015.


Category: Business, Vietnam

Print This Post