Ho Chi Minh City: Borrowed Another 33 Billion Yen to Complete Subway Line 1 | News

10/29/2020 Vietnam



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At the Government’s online conference on the disbursement of programs, projects and concessional loans from abroad, held on the morning of October 29, the Vice Chairman of the Ho Chi Minh City People’s Committee, Vo Van Hoan, reported that the City Ho Chi Minh is developing by implementing 9 ODA projects with a total investment capital of more than 122.5 billion.

For ODA allocated from the central budget, Ho Chi Minh City has allocated 5.044 million VND for 6 projects; As of October 23, it has disbursed 1,510 million, almost 30% of the assigned plan; It is expected that by the end of 2020 it will disburse 2,038 million VND, reaching 40.7% of the plan.

For the capital of the Government ODA for the granting of loans, Ho Chi Minh City has allocated in detail VND 10,187,000 million for 5 projects; As of October 23, it disbursed VND 5,037 million, reaching 48% of the assigned plan.

Experience comfort inside the modern Ben Thanh subway train – Suoi Tien route
Mr. Hoan said that the ODA capital disbursement rate in Ho Chi Minh City was lower than the public investment capital disbursement rate because the ODA plan allocated for lines 1 and 2 of the subway represented 30% of the plan. of total capital. HCMC but slow disbursement, mainly due to problems with the VND and Japanese yen exchange rates. In addition, there are also reasons for the change in the law, the process of adjusting loan contracts that confuses ministries and localities.
Ho Chi Minh City: lent another 33 billion yen to complete subway line 1 - photo 1

Metro Line 1 faces a series of obstacles related to ODA disbursement procedures

To accelerate the capital disbursement of ODA, Mr. Hoan proposed to the Prime Minister to direct the Ministry of Planning and Investment to accelerate the capital disbursement for the project of the No.1 (Ben Thanh – Suoi Tien) and No.1 subway line project. 2 (Ben Thanh – Tham). Salary). If the disbursement was not made on time in the last 2 months of 2020, Ho Chi Minh City requested the Prime Minister to allow the transfer and continue the disbursement in 2021.

At the same time, Ho Chi Minh City proposed to the Ministry of Finance to consider the extension of the loan contract VN11-P7 of metro line 1 until October 31, 2121 as the basis for the disbursement of all ODA loans under this agreement.

Inside the first train of the Ben Thanh – Suoi Tien train line 1
Also related to the Metro Line 1 project, Mr. Hoan said that Ho Chi Minh City signed three loan agreements with the Japan International Cooperation Agency (JICA) with a total capital of more than 155 billion yen. Ho Chi Minh City is cooperating with JICA to prepare to sign the fourth loan agreement, which is also the last loan, which is expected to be around 33 billion yen.

Therefore, Ho Chi Minh City proposed to the Prime Minister to lead the Ministries of Finance, Planning and Investment, Justice, Foreign Relations, … to support Ho Chi Minh City in promoting and working with the Japanese side to implement the procedures and completion of the signing of this loan before June 30, 2021 to ensure sufficient capital for the disbursement.

Metro Line 1 is 19.7 km long, 2.6 km of which are underground with a total investment of more than 43.6 billion VND, which is expected to be completed by the end of 2021.



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