Vietnam Rail Debt To China Comes Due, But Trains Don't Run

Vietnam Rail Debt To China Comes Due, But Trains Don't Run

Andrew H. Sweet

Work began in October 2011 on the Cat Linh-Ha Dong urban railway, and trains were projected to begin running in 2015. But after ten years of construction, the project—which covers a 13.5-kilometer line and 12 elevated stations—is not ready to serve passengers. Investment costs have soared to U.S. $868 million from the initial $553 million.

Vietnam has borrowed $670 million of this total from China in three separate loans, and payment on the principal of these loans is now due, sources say.

Much remains unclear about the project's delays and overruns in cost, former Vice Minister of Resources and Environment Dang Hung Vo told RFA on Oct. 21.

Read the original story here.

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