Ho Chi Minh City’s metro line No. 2 is falling behind schedule and expected to cost half more than the initial estimate, according to the city government.
The city said in a report submitted to the investment ministry said the Asian Development Bank, German government-owned development bank KfW and the European Investment Bank have “basically” agreed to provide more funds as the line is now expected to cost more than US$2 billion compared with the initial number of nearly $1.35 billion.
It said the cost has burgeoned after a recent estimate found the track and underground stations would cost $1.17 billion instead of $404 million as expected earlier.
The city will file a detailed report this month on the cost adjustments to seek approval from the government.
Work on the line, one of the eight planned for the country’s first subway network, began in January with money from official development assistance and the city.
It will run more than 11.3 kilometers, including 9.3 kilometers underground, from near Ben Thanh market in District 1 to Tan Phu District on the outskirts.
Work on the first line connecting Ben Thanh and Suoi Tien in District 9 began in 2012 and is expected to finish by 2018.