Ho Chi Minh City activates special mechanism to prepare for groundbreaking of metro line 2

The Office of the People's Committee of Ho Chi Minh City has just sent a document to the Department of Construction, the Department of Finance, and the Ho Chi Minh City Urban Railway Management Board (MAUR) conveying the opinion of Vice Chairman of the People's Committee Bui Xuan Cuong regarding the application of special mechanisms, in accordance with Resolution 188 of the National Assembly , to implement Metro Line 2 (Ben Thanh - Tham Luong).

To expedite the project's commencement, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong instructed MAUR to proactively coordinate with the Department of Construction and the Department of Finance to urgently implement matters related to the special mechanism, implementation schedule, and guidance on selecting consultants and EPC contractors for the project.

In cases where the content exceeds their authority, the units must promptly report to the Ho Chi Minh City People's Committee for consideration and decision.

Metro Line 2 will run underground beneath Cach Mang Thang Tam Street. Photo: Le Toan

The Department of Construction is tasked with leading and coordinating with other departments and agencies to advise on and propose adjustments to the project, without requiring adjustments to the investment policy.

Simultaneously, we propose using FEED (Feed-Out Design) instead of basic design and implementing steps for preparing and evaluating bidding plans, cost estimates, and handling consulting contracts.

The Department of Finance is tasked with proposing the allocation of city budget funds for the medium-term periods of 2026-2030 and 2031-2035.

This department is also tasked with working with ministries and agencies to advise on organizing a meeting between city leaders and leaders of central agencies to reach a consensus on accelerating certain issues regarding the suspension of ODA and preferential loan funding; and adjusting the loan agreement with the German Reconstruction Bank (KfW).

According to the plan, Ho Chi Minh City will start construction of metro line 2 at the end of this year because the project has cleared the land for construction.

Metro Line 2 (Ben Thanh - Tham Luong), over 11 km long, was approved in 2010 with an initial total investment of 1.3 billion USD (equivalent to 26,000 billion VND).

By 2019, the project's total investment had been adjusted to US$2.1 billion (nearly VND 47,900 billion), of which VND 37,487 billion came from ODA loans from three main donors: the Asian Development Bank (ADB), the German Reconstruction Bank (KfW), and the European Investment Bank (EIB).

Due to difficulties in securing financing for the project because of changes in loan conditions from international donors, Ho Chi Minh City has decided to switch to investing using its own budget.

Source: https://baodautu.vn/tphcm-kich-hoat-co-che-dac-thu-chuan-bi-khoi-cong-tuyen-metro-so-2-d322740.html