Vietnam to seek additional loan for Chinese-built Hanoi elevated railway

Thanh Nien News

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The Cat Linh-Ha Dong Elevated Railway that is under construction in Hanoi. Photo: Ngoc Thang 

The government has decided to seek an additional loan from the Chinese government for a Chinese-built elevated railway project in Hanoi that is becoming infamous for slow progress and ballooning costs.
The loan of more than US$250 million will be used to complete the Cat Linh-Ha Dong Elevated Railway by 2016.
The Ministry of Transport oversees the progress and funding.
The 13-km line was originally scheduled to start in 2008 and finish in November 2013, and estimated to cost $552.86 million.
China provided $419 million in official development assistance. But work only got underway in October 2011.
Earlier this year the China Railway Sixth Group Co. Ltd., the main contractor, asked the Vietnamese government for more funding to continue with the work, saying construction and material costs had increased.
The estimated cost has increased by $315 million to more than $868 million.
The project deadline was moved to late 2014 and then to March this year and later to June 30.
It has also acquired a bad reputation following several accidents, one of which was fatal.

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