Hanoi authorities have halted two metro projects under the form of public-private partnership (PPP) to wait for new regulations following the government’s on-going revision of its investment mechanism.
Cat Linh-Ha Dong metro project in Hanoi
The information was given by the director of the municipal Department of Planning and Investment Nguyen Manh Quyen.
According to Quyen, earlier, Hanoi announced a list of projects to seek investment for eight metro projects under a PPP format.
However, recently, the government has decided to revise Decree 30 on selecting investors for PPP projects, so the city has suspended two metro projects which of interest to Vingroup and T& T Group.
Hanoi planned to have eight metro lines by 2030 with vision until 2050. Only two have started construction so far and none started operations.
The first metro line Cat Linh-Ha Dong running from Cat Linh Street in Dong Da District to the Yen Nghia area in Ha Dong District has failed to go into operation despite 99% of its work being completed.
Meanwhile, the Nhon-Hanoi Railway Station, the second line, is half completed. The 12.5-km line connects Nhon in Tay Tuu Ward of Nam Tu Liem District to Hanoi Railway Station in Dong Da District.
The Ministry of Transport had reported that the sluggish implementation has caused costs to increase VND81 trillion (USD3.5 billion) for five metro projects in Vietnam. Dtinews
Hanoi City People's Committee has just proposed the construction of the third metro project connecting Hanoi Station to Hoang Mai District.
The total investment capital of the five metro line projects in Hanoi and HCM City increased by VND80 trillion ($3.47 billion) against initial expectations due to delays in land clearance, arranging capital, and irresponsible investors.