Officials vow sky-train costs won't rise again

Vietnamese rail authorities have promised that the cost of the 13km, sky-train project from Cat Linh to Ha Dong will not rise again.

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The project was approved in 2008 for a total investment of about US$552 million. China contributed $419 million.

However, the overall cost rose to $892 million in April, a 61.5 per cent surge.


The acting director of the Railway Project Management Board, Nguyen Manh Hung, said that this was due to inflation and exchange-rate fluctuations between the Chinese yuan and the US dollar.

Project modifications also added to costs. Changes to the original project include the construction of three-level stations instead of the proposed two-levels.

The trains themselves were upgraded from steel to stainless steel, the route itself was changed slightly – and the train depot was relocated.

The three-level stations will cost $133 million, an increase of $84 million of which $43 million is due to inflation and $40 million due to the modifications outlined.

The roomier stations will reduce the amount of land clearance required and save the State about $43 million in relocating residents.

Upgrading the body of the trains to stainless steel will cost an extra $3 million, but this also means eliminating the need to invest in a paint shop worth of $2.5 million.

The rising cost of training staff, construction materials and wages also contributed to the increases. The project is scheduled to be completed next year.