Hitachi is the contractor for package CP3 (purchase of electromechanical equipment, locomotives, rails and maintenance) in Metro project No. 1 (Ben Thanh - Suoi Tien).
According to the contract, the contractor Hitachi is responsible for submitting a draft scope of work for the subcontract between the two parties for maintenance work at least 6 months before the operation of Metro Line 1, according to the Ho Chi Minh City Urban Railway Management Board (MAUR).
The costs for implementing the bid package have been calculated during the bidding process, negotiation, consensus and signing in the contract (in the provisional cost section).
However, the contractor Hitachi did not agree to do so and said that this budget was provisional from the time of signing the contract in 2013 and was not enough to carry out the current work of the project.
In 2023, MAUR and the NJPT consulting consortium repeatedly invited representatives of Hitachi's headquarters to attend meetings with the Hitachi contractor to develop a plan to promote negotiations on the maintenance service contract according to the provisions of the original contract for the CP3 package. However, the Hitachi contractor avoided, did not cooperate, and reserved its opinion.
MAUR even made concessions by considering reducing the scope of maintenance work and reducing the number of technical personnel (Vietnamese) performing maintenance work under the contract.
At the same time, MAUR also discussed the idea of Tokyo Metro or Osaka Metro participating as a subcontractor of Hitachi to provide maintenance services.
However, MAUR's efforts and support with Hitachi Company were not successful. In meetings and through written exchanges on the maintenance contract, Hitachi contractor still maintained its position that this maintenance contract was an independent contract and proposed a price 3.5 times higher than the base price in the original contract.
MAUR believes that in case of failure to reach a common agreement on the 5-year maintenance contract with the Hitachi contractor, there should be an alternative plan (hiring a qualified unit) and there will be measures to complain to the contractor according to the contract terms.
During a recent business trip to Japan, Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong worked with Hitachi Company to find a solution to this problem.
Although some other contents of the CP3 package have made progress, such as the establishment of the DAB Dispute Resolution Board, the handover of equipment to consultants for training of operating staff... the maintenance contract issue has not been resolved due to differences in understanding of the original contract content.
Hitachi Company said that it has the right to offer a new unit price, while NJPT's general consultant said that the contractor is only allowed to calculate the price slippage according to the rate specified in the original contract.
Mr. Bui Xuan Cuong suggested that relevant parties continue to cooperate on the contents that have made progress, and continue to discuss and find solutions for the remaining contents based on a clear legal basis.
Metro Line 1 is the first urban railway project in Ho Chi Minh City, with a total investment of more than 43,700 billion VND and a length of nearly 20km.
The project started in 2012, with the original plan to complete it after 6 years, but the schedule was delayed many times. Currently, Metro Line 1 has reached more than 98% of its volume, and is expected to be commercially operational by the end of this year.
