Inspectorate seeks accountability for serious delays, cost overruns in Nhổn-Hà Nội Station metro line

The elevated sections of the Nhổn-Hà Nội Station urban rail project have been nearly completed. — VNA/VNS Photo Tuấn Anh

HÀ NỘI — The Inspectorate of Hà Nội City has announced its findings into a number of aspects of the long-delayed Nhổn-Hà Nội Station urban rail line project, with costs now ballooning to double the initial estimates.

In 2009, when the project commenced, Hà Nội’s authorities planned to commercially operate the urban railway section from Nhổn (in Từ Liêm District) to Hà Nội Station (in Hoàn Kiếm and Đống Đa districts) by 2015.

At that time, the total investment for the project was projected to be EU€783 million (US$856.8 million) (€653 million in loans and €130 million in counterpart funds).

By 2014 however, the project’s total investment was adjusted to €1.176 billion ($1.286 billion), €957.99 million in loans and €218 million in counterpart funds.

In May 2023, another adjustment was made, raising the total investment to around €1.3 billion ($1.42 billion), over 1.66 times the original budget, while the completion date was pushed back to 2027, 12 years from the original deadline. Prime Minister Phạm Minh Chính approved the adjustment put forward by Hà Nội People’s Committee.

Regarding the implementation of the bidding packages, the Hà Nội City Inspectorate said two companies working on packages CP01 and CP02 – Sông Đà-Việt Đức JSC and INCICO – were not included in the list of approved subcontractors for the project.

The Inspectorate has requested the Hà Nội Urban Railway Management Board to provide documentation on the execution of the tasks assigned to these two companies. However, there has been no feedback from the subcontractors to date.

The inspectorate explicitly stated that delays in handing over land to subcontractors led to the prolonged duration of the metro line, resulting in increased project costs.

The metro line received approval for the feasibility study report from the municipal People’s Committee in 2009. Hà Nội People’s Committee assigned the authorities of Hoàn Kiếm, Bắc Từ Liêm, Đống Đa, Ba Đình, and Cầu Giấy districts to carry out land clearance to hand over to the project.

In essence, the districts’ people’s committees followed the procedures for land clearance compensation, support, and resettlement according to the regulations and guidance of the municipal People’s Committee. However, the progress was slow, and the responsibility for the delays over various periods was determined to be lying with the people’s committees of Ba Đình, Hoàn Kiếm, Đống Đa, and related units.

The inspectorate recommended the Hà Nội People’s Committee to report the Standing Committee and Party Committee, that would report to the Government’s Prime Minister on the issue.

Regarding accountability, the inspection conclusion clearly states that it belongs to the leadership of the Hà Nội Urban Railway Management Board during each period (from 2013 to 2022).

The inspectorate recommends that the Hà Nội People’s Committee assign the Department of Home Affairs to review the responsibilities of organisations and individuals with regards to the mentioned issues and give advice to the Hà Nội People’s Committee on appropriate measures.

Hà Nội People’s Committee is also asked to direct the board to urgently relocate technical infrastructure to free up land and hand it over to subcontractors to implement the project.

The capital city is expecting to officially put into operation the elevated section of the project on April 30, 2024, on the occasion of the National Reunification Day. — VNS