Will problems with contractors affect the progress of metro line 1?

According to plan, metro line 1 (Ben Thanh - Suoi Tien) is expected to be commercially exploited in the fourth quarter of 2024.

However, with many problems and complaints between the contractor Hitachi (Japan) and the investor (HCMC Urban Railway Project Management Board), will the first metro line in HCMC be put into operation on schedule or will it continue to be delayed?

Metro Line 1 is on schedule and is expected to be commercially operational by the end of 2024. Photo: My Quynh

The Ho Chi Minh City Urban Railway Project Management Board said that the problems between the Urban Railway Management Board and the contractor Hitachi have now reached some consensus solutions.

In which, the investor has temporarily paid the costs that the contractor Hitachi proposed related to the use of equipment for training of operating personnel and the trial operation phase.

To date, approximately 80% of the costs have been assessed as appropriate by consultants. The final determination of costs and related benefits will be decided by the Dispute Adjudication Board (DAB) or commercial arbitration.

Thanks to these developments, contractor Hitachi has begun coordinating with relevant parties to hand over trains and equipment for training of operating personnel from August 15.

Students can learn directly on the equipment after the Hitachi contractor hands over the entire electromechanical system. Photo: My Quynh

After that, it is expected to start the trial-run phase and simultaneously carry out system safety certification assessment work to complete the project by the end of 2024.

Along with that, the Ho Chi Minh City Urban Railway Project Management Board is reviewing and consolidating legal documents, ensuring compliance with legal regulations, international treaties on operating mechanisms, authority to decide on dispute resolution results, cost mechanisms and other related issues in the establishment of a dispute settlement body (DAB) of the contractor Hitachi.

"Basically, the investor has made efforts to coordinate with relevant units to implement solutions to resolve issues related to the project's handling of difficulties, ensuring project progress in a harmonious spirit and in accordance with international practices as well as Vietnamese laws," informed the Ho Chi Minh City Urban Railway Project Management Board.

Metro train No. 1 technicians ready for official operation. Photo: My Quynh

Previously, contractor Hitachi sued the investor of metro line 1 project, demanding compensation of about 4,000 billion VND for costs incurred due to extending the project completion time.

The investor stated that according to the contract, the contractor will be entitled to related costs if the extension of contract performance time is due to the investor's fault.

On the contrary, they must compensate for damages if the delay is caused by their fault. Therefore, the total cost incurred by Hitachi does not reflect the delays caused by this contractor and must be re-evaluated to determine specifically.

By early August 2024, the Hitachi contractor had handed over the entire mechanical and electrical system of the CP3 package to the NJPT Joint Consulting Joint Venture. This is considered one of the important milestones determining the progress of the completion of metro line No. 1 in Ho Chi Minh City (Ben Thanh - Suoi Tien route).

Specifically, the handover system includes 11 trains, rails, ticket cards, information, signals, signs, power supply, overhead power supply; depot and workshop equipment, monitoring and data collection; platform barrier doors.

After this contractor handed over the above contents, the group of Vietnamese engineers and workers were officially allowed to practice on the equipment and test run the entire metro line.

It is expected that in October and November 2024, employees will complete the training process and participate in the trial operation, ready to perform their duties when metro line 1 is put into commercial operation.

Source: https://www.baogiaothong.vn/vuong-mac-voi-nha-thau-co-anh-huong-tien-do-khai-thac-metro-so-1-192240913182533717.htm