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Friday, September 29, 2023

HCMC urges capital allocation for cash-strapped Metro Line No. 1 company

The Saigon Times

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HCMC – The government of HCMC has requested the Ministry of Justice to help with the procedure to allocate capital for the cash-strapped HCMC Urban Railway No. 1 Company Limited (HURC1), which will operate Metro Line No. 1.

According to the HCMC People’s Committee, the capital allocation is necessary for HURC1 to ensure employee compensation, personnel training, technology transfer and smooth takeover of the metro line which connects the landmark Ben Thanh Market in District 1 and Suoi Tien Theme Park in Thu Duc City.

The city proposed the Ministry of Justice urgently work with the Ministry of Finance to advise the Government to issue a resolution on increasing the charter capital of HURC1.

In October 2022, the city proposed the prime minister and the Ministry of Finance approve in principle the use of the city’s budget to supplement VND268 billion to the company’s charter capital.

The Ministry of Finance then forwarded the proposal to the prime minister for consideration before the city could take the next steps.

On February 24, the Government Office requested the minister of finance to work with the minister of justice and heads of relevant agencies to collect feedback and report it to the prime minister prior to March 8.

HURC1 was put into operation in 2019 to make necessary preparations for the management and operation of Metro Line No. 1 when it is completed.

Contractors have urged HURC1 to arrange human resources for technology transfer but the company has found it hard to hire staff due to its lack of capital.

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