Strict criticism of the leaders of the Board of Directors of HCMC Urban Railways in the period 2018-2019



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Strict criticism of the leaders of the HCMC Urban Railways Board of Directors in the period 2018-2019 - Photo 1.

People on Truong Chinh Street (Tan Binh District, Ho Chi Minh City) hand over the land for the No. 2 subway project – Photo: TRUNG TRUNG

This delay affects the progress, quality of the project, and Ho Chi Minh City’s reputation with sponsors.

HCMC People’s Committee assign the leadership of the Board of Directors of the Urban Railways continue to monitor and take responsibility for the relevant bosses in the event of inspection and auditing that unlawful persons discover in the signing of contracts with the CI consultant and urban railway construction projects.

According to their research Youth, with the metro project No. 2, signed by the Board of Directors of Ferrocarriles Urbanos Contract with CI consultant (The head of the consortium is a German company) in January 2012 for a value of 43.98 million euros with two phases of work.

Phase A designs and supports the tender for the main packages of the project worth 12.7 million euros and phase B is the supervision of the construction of the project with a value of 31.25 million euros. The execution time for the phase A bundle contract is until December 31, 2015.

According to the contract, the implementation time of the consultancy is only 18 months, but so far it has been extended and since October 2018, IC consultant temporarily stopped mobilizing support personnel for the project. Currently, the tender package has generated 12 annexes to the contract, of which 6 annexes generated a non-contractual workload with a value of more than 8.9 million euros.

There are steps between the investor and the consultant. negotiate and negotiate on the content of annex No. 13 of the contract. However, because the CI consultant’s agreement was not reached, the City’s Railroad Management Board has issued a written request for an opinion. The objections of the donors to have a basis inform the Popular Committee of the City on the results and alternatives of the negotiation.

Recently, on March 11, in a report to the Ministry of Planning and Investments on the status of the project, the People’s Committee of the City also pointed out the reason for the delay in signing the annex to the contract due to many objective factors, so since October 2018 the interviewer has stopped participating in the project.

During the negotiation process, the two parties also reached an agreement on the scope of work in Appendix No. 13 of the contract. However, the negotiation faces obstacles because the consultant requires payment for the consulting services. IC has implemented the original contract and contract addendum above, before reverting to appendix 13 of the trading contract.

According to the Ho Chi Minh City People’s Committee, when reviewing the package contract conditions and previously signed annexes, as well as Vietnam regulations on contract management, these tasks have not been completed, making it impossible to perform the payment.

DTo prepare for fruitless situations or advice refusing to negotiate, Burban rail management safety will work with donors to find an alternative that avoids affecting the progress of the project.

Metro project No. 2 has many construction and installation packages, in which the first CP1 package (construction of office buildings and ancillary works at the Tham Luong depot) was completed in District 12.

Other construction and installation packages such as: CP3 (tunnels and stations), CP4 (viaducts, aerial stations), CP5 (electromechanical and electrical systems) … are being completed by the investor. The project goal in 2022 is expected to start and go live by the end of 2026.

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