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Wednesday, June 19, 2024

Chinese contractor’s capital demand for Hanoi railway rejected: deputy minister

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HCMC – Deputy Minister of Transport Nguyen Ngoc Dong stated that the Chinese contractor’s demand of US$50 million for the trial operation of the Cat Linh-Ha Dong urban railway project in Hanoi City would not be considered by the Ministry of Transport as it goes against the provisions of the contract.

Stressing that the demand was not made in an official document, the deputy minister told the local media on June 2 that the Chinese side demanded US$50 million for the trial operation of the railway during certain online meetings held between them and the Railway Project Management Unit.

The payments for the railway project have been made by the Vietnamese side in accordance with the regulations of the engineering procurement and construction contract, the deputy minister noted.

In case the Chinese contractor sends a document requesting the capital, the demand will not be considered as it goes against the contract, Dong added.

Under the contract, even if the Chinese contractor suffers from financial difficulties during this time, they will have to run a trial operation, Dong remarked, adding that the Vietnamese side will not bear responsibility for any additional payment.

Vietnam has paid 70% of the amount due for the Cat Linh-Ha Dong railway project, while the rest will be paid before the project is handed over, in line with the provisions of the contract.

The report sent earlier by the Government to the National Assembly revealed that Chinese contractor China Railway 6 Bureau Group had requested US$50 million for the operation of the system before handing over the project.

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