Depreciation causes subway costs to double

The estimated costs of the Ben Thanh - Suoi Tien subway have doubled to $2.2 billion due to depreciation of Vietnamese dong.

The Ho Chi Minh City People’s Committee has instructed the Urban Railways Management Board (URMB) to discuss the costs with the Japan International Cooperation Agency.

It has also ordered the URMB to report to the ministries of Transport, and Construction about the project’s issues.

The first work on the subway system is set for this year, to be finished in 2013 and open to the public one year later.

The 19.7 kilometer line, of which 2.6 km will be underground, will run through districts 1, 2, 9 and Thu Duc District and part of Di An District, Binh Duong Province.

Source: vnbusiness