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Contractor Hitachi sues Metro Line 1’s investor at VIAC

The Saigon Times

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HCMC – Hitachi, the Japanese contractor responsible for CP3 contract package of Metro Line No. 1 in HCMC, has sued the investor of the project at the Vietnam International Arbitration Center (VIAC), demanding compensation for the costs it has incurred.

CP3 package includes the procurement of electromechanical equipment, train engines, rails, and maintenance.

Under the terms of the CP3 contract, the completion date was April 8, 2018, or 244 weeks (1,708 days) after construction work began on August 5, 2013. And now Hitachi demanded an extension of time (EOT) total 4,124 days if Metro Line No. 1 is put into commercial service on November 20 2024.

However, consultant NJPT proposed the Management Authority for Urban Railways of HCMC (MAUR), the project investor, provisionally approve an EOT of 2,161 days.

Therefore, Hitachi filed a case at the Vietnam International Arbitration Center (VIAC) on  April 6, 2023, requesting an EOT of at least 2,773 days and a compensation of around VND527 billion.

Hitachi also requested the additional costs be reimbursed for the time extended, which amount to around 23.72 billion Japanese yen, equivalent to VND4,000 billion.

According to the investor, the claim only reflects Hitachi’s perspective, which should be assessed by the project’s consultant.

Metro Line 1 aims to be completed and put into commercial operation in the fourth quarter of this year. However, in the final stages, there are some obstacles related to the interpretation of contracts and coordination between the general consultant and Japanese contractors that are slowing down some works.

The 19.7-kilometer-long metro line connects the landmark Ben Thanh Market in District 1 and Suoi Tien Theme Park in Thu Duc City. A total of VND43.7 trillion is required for the project, and sourced from Japanese ODA loans and Vietnam’s reciprocal funding.

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