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Metro No. 1 operating company ran out of funding

Avatar of Nick John By Nick John Dec1,2023 #Metro #operating
Metro No. 1 operating company ran out of funding 2
Metro No. 1 operating company ran out of funding 2

On February 25, a representative of Urban Railway No. 1 Company Limited (HURC1) – the operator of Metro No. 1 (Ben Thanh – Suoi Tien) said that they are waiting for competent authorities to review and guide them.

HURC1 belongs to Ho Chi Minh City People’s Committee, 100% state capital.

Metro Train No. 1 lands on the tracks at Long Binh depot (Thu Duc City) in 2021. Photo: Gia Minh

According to the above company establishment project, during the preparation phase before commercial operation of Metro Line No. 1, this unit has no revenue and will be allocated a budget to ensure conditions for implementing the work.

After 7 years, the above unit still has no revenue because Metro No. 1 has not been completed.

According to VnExpress’s research, since August last year, when the funding source to pay salaries and maintain operations no longer existed, the situation of HURC1 company faced many difficulties, affecting the psychology of workers.

At the end of 2021, the People’s Committee of Ho Chi Minh City proposed to the Prime Minister to approve the city’s use of local budget to allocate funds for HURC1 company, to ensure operations in the preparation phase for commercial exploitation of the route.

Currently, the Standing Committee of the City Party Committee has given the company an advance of 2 billion VND to pay salaries and take care of the past Tet holiday for workers.

Metro No. 1 has a total investment of more than 43,700 billion VND, nearly 20 km long from Long Binh depot (Thu Duc City) to Ben Thanh station (District 1), with three underground stations and 11 elevated stations.

Metro No. 1 operating company ran out of funding

Metro Route No. 1. Graphic: Spirituality

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