Ho Chi Minh City urgently mediates with Japanese contractor at Metro Line 1

MINH QUÂN |

Ho Chi Minh City urgently organizes commercial mediation and negotiations with Japanese contractors related to Metro Line 1 project to definitively resolve complaints.

As Lao Dong Newspaper has reported, Metro Line 1 project (Ben Thanh - Suoi Tien) currently has many complaints from Japanese contractors with a total arising value of more than 324 million USD (equivalent to more than 8,474 billion VND).

According to the Ho Chi Minh City People's Committee, in the past time, Ho Chi Minh City leaders have worked and exchanged views with the Japanese side and related contractors many times.

The city has thoroughly grasped the policy of definitively resolving complaints within the contract scope, and at the same time directed the Urban Railway Management Board to urgently organize commercial mediation and negotiations with contractors. The goal is to soon agree on the value of mediation, handle overall arising issues, and ensure the common interests of the project.

Some Japanese contractors have shown goodwill to cooperate, wishing to soon end the dispute to complete the contract.

For example, at package CP1b (underground section from City Opera House station to Ba Son station), the claim value is about 15 million USD. The Shimizu - Maeda contractor consortium has agreed to participate in commercial mediation at the International Trade Mediation Center in Vietnam.

The Ho Chi Minh City People's Committee has directed the investor to coordinate with the general consultant NJPT and the legal consulting unit to comprehensively review the contents of complaints, determine reasonable costs arising under the contract. On that basis, the Department of Construction will take the lead in reviewing and proposing a comprehensive mediation plan and as a basis for signing contract appendices.

For package CP2 (elevated section and depot), the Sumitomo - CIENCO6 consortium proposed to resolve the overall complaints with an initial value of about 100 million USD, and at the same time committed to withdrawing the lawsuits at the Vietnam International Arbitration Center if a mediation agreement is reached.

The city has assigned the investor to continue negotiating with contractor SCC to narrow the gap, agree on a handling plan and implement the next procedures according to regulations.

Package CP3 (purchasing electromechanical equipment, locomotives, carriages, railways and maintenance) implemented by Hitachi is currently the item with the most problems. During the implementation process, the package generated 121 complaints with a total value of about 332 million USD.

Hitachi contractor said that priority is given to resolving disputes through arbitration. The Ho Chi Minh City People's Committee has assigned the investor to continue working and negotiating in the direction of mediation in a spirit of cooperation, and at the same time prepare complete legal documents to be ready for arbitration proceedings, including counterclaim content if necessary, in order to protect the interests of the Vietnamese side.

Metro số 1 TPHCM đã phục vụ gần 30 triệu lượt khách. Ảnh: Anh Tú
Ho Chi Minh City Metro Line 1 has served nearly 30 million passengers. Photo: Anh Tu

Ho Chi Minh City People's Committee said it will continue to closely coordinate with the Japanese side, relevant agencies and contractors to definitively remove obstacles, accelerate payment progress, ensure efficiency, progress and prestige of Metro Line 1 project.

The city will also promptly report to the Prime Minister for contents beyond its authority.

Regarding package CP3, the Ho Chi Minh City People's Committee said that it will continue to exchange with the Japanese side, including the Japanese Ambassador to Vietnam, requesting Hitachi contractor to urgently and seriously fully implement the obligations under the contract, especially to overcome existing technical defects, ensuring safety and operational efficiency of Metro Line 1 project.

At the same time, the Ho Chi Minh City People's Committee has established specialized working groups to handle complaints and disputes. In the coming time, the city will continue to consolidate the working mechanism, strengthen the responsibility of relevant units to ensure the progress and quality of resolving backlogs of this key project.

Metro Line 1 was approved in 2007, started construction in 2012, nearly 20 km long, connecting the center of Ho Chi Minh City with the eastern gateway.

The route has 11 elevated stations and 3 underground stations, with a total investment of more than 43,700 billion VND, mainly using ODA capital from Japan.

Metro Line 1 officially opened on December 22, 2024, and has served nearly 30 million passengers to date.

Due to the construction time of Metro Line 1 lasting nearly 12 years, many problems arose.

MINH QUÂN
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