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Tuesday, June 25, 2024

Additional funding approved for HCMC metro line management firm

The Saigon Times

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HCMC – Authorities have approved an increase in the charter capital of  the management company of Metro Line No. 1 in HCMC, addressing the challenges caused by a shortage of capital that the company has faced in recent years.

On November 15, the HCMC People’s Committee approved a revision to Decision 6339, which was issued in 2015 and pertains to the establishment of HCMC Urban Railway No. 1 Company, the entity responsible for managing Metro Line No. 1.

According to the revised decision, the original charter capital of the company is adjusted to VND286 billion.

In addition to the initially registered charter capital of VND14 billion, which was used for purchasing basic office equipment, the Metro Line No. 1 management company has not received funding since 2019. This prolonged lack of capital has hindered the company’s preparations for commercial operation, including employee recruitment.

Previously, Deputy Prime Minister Le Minh Khai authorized the HCMC People’s Committee to review and approve the increase in charter capital for the company. This additional funding is essential to support the company’s workforce, enable technology transfer, and ensure the timely commercial operation of Metro Line No. 1.

During a recent meeting on the city’s socio-economic development, the management board for HCMC Urban Railway No. 1 Company reported that Metro Line No. 1 is 96% complete.

The city will conduct site inspections of various categories of the metro line project and make payments for completed work. Commercial operation of Metro Line No. 1 is scheduled to commence in July next year.

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