Specialists criticise shortcomings in preparation for North-South high speed railway project

Prof Dr Pham Sy Lien, deputy head of Vietnam Construction Association (VCA) while speaking at “North-South high speed railway” seminar criticised shortcomings in preparation for North-South high speed railway project

According to him Vietnam spent only six months for studying and two months for verifying the North-South high speed railway project with a huge investment capital of $55.8 billion. �It seems to be a hasty decision that is being offered for discussion before National Assembly�, he said.

The seminar was held yesterday in Hanoi by Ministry of Traffic and Transportation and Vietnam Union of Science and Technology Association (VUSTA).

He added that North-South high speed railway project will be conducted in each phase with total expense of $55.8 billion but the drawing-up of the project was sparse without defining the correct impacts to relevant fields.

In addition, the project uses Japan’s ODA, but from report to verification both was implemented by Japan so the project could not reach objectiveness and independence, Liem wondered. Vietnam had to borrow to $550 million of ODA loans from Japan to build Can Tho Bridge while it only used $60 million of loans from Australian government to make My Thuan bridge. Perhaps, the $55.8 billion ODA loan of Japan for building North-South high speed railway in Vietnam could be expensive [high loan rate].

Over two years ago, the investment report estimated total cost for North-South high speed railway at $33 billion but now the figure was lifted to $55.8 billion and could be $100 billion in next five years.

Criticising the report of project research board, many specialists in fields of construction, architecture, projection and environment said that there are many things to complete the project because in next years, the traffic and transport sector will enhance investment and construction in a series of expressways, seaports and airports. Meanwhile, the investment capital for building infrastructure in HCM City and Hanoi is on very high demand.

Prof Nguyen Xuan Truc, Vietnam Bridge and Road Association had a doubt of the plan of the investor representative Traffic and Transport Investment, Consulting and Construction Joint Stock Co TRICC’s on capital withdrawal in 33 years and the forecasted passenger volume using the high speed railway.

In many countries, building the high speed railway is to serve the people who have to be on long way to work. So Vietnam needs to consider whether Vietnamese people living in Vinh and working in Hanoi (for instance) could be adaptable to the project or not because if people do not go to work by metros, the investment efficiency of the project will not be high.

He cited, factually the volume of vehicles operational in HCM City now is lower ten times than the estimation made before building the huge project. Following sections of metro should be built after surveying the investment efficiency of Vinh-Hanoi metro line.

Economist Dr Nguyen Quang A, wondered about the feasibility of capital withdrawal plan being recorded in the project report and he also was doubted about the implementation capacity of project investors because Vietnam’s national potential is limited whilst a lot of other works such as metro, seaports and airports are needed to be built. If not cautious in investments, Vietnam will be dipping in foreign debts and by that time that will save us? Therefore, we have to consider carefully which first should be done.

As reported by Traffic and Transport Investment, Consulting and Construction Joint Stock Co TRICC, the North-South high speed railway is total 1,570 kilometres long, crossing 20 provinces and cities. Foremost, the investors will build and put Hanoi-Vinh section into operation and then Nha Trang-HCM City section. By 2035, the whole railway will be clear with 27 stations.

As estimated, it will take 5 hours and 38 minutes to travel from Hanoi to HCM City by the railway.

TRICC said that the project will revoke 4,173 hectares of land causing impacts to 16,529 households.

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Tags: North-South high speed railway project, Vietnam Infrastructure, Vietnam transport