May 16, 2012
Sumitomo Corporation wins contract to build Vietnam's first urban railway system- Undertaking the construction of an elevated section of the Ho Chi Minh City Metro Line 1 -
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Susumu Kato) and a state-owned Vietnamese general construction company* jointly won a contract worth approximately 62.6 billion yen to provide construction and engineering work for a part of the Ho Chi Minh City Metro Line 1, Vietnam's first urban rapid transit system. As of today, the two companies have entered into a contract with Ho Chi Minh City Management Authority for Urban Railways.
The project is of great significance to both Vietnam and Sumitomo Corporation, not only because it is positioned as one of the country's highest priorities, but also because it is the country's first urban railway, which aims to alleviate worsening traffic congestion and air pollution in Ho Chi Minh City.
Ho Chi Minh City Metro Line 1 will run for 19.7 kilometers (12.2 miles) and include both underground and elevated tracks from the city's centrally located Ben Thanh Market, to northeastern Suoi Tien. In accordance with the contract, 17.2 kilometers (10.7 miles) of elevated tracks, including 11 stations, will be constructed along with a train yard for Line 1 that covers some 21 hectares (226,000 square feet). Completion of the construction work is scheduled for the end of 2016.
The structure of the Line 1 contract, which includes other bid packages, such as train systems and underground civil work, will be financed by Special Terms for Economic Partnership (STEP) yen loan issued by the Japanese government to the Vietnamese government. Another yen loan will also be extended for consultancy services to the construction work, which is scheduled to be offered by a group of consultants led by Nippon Koei Co., Ltd.
In Vietnam, many rapid transit projects are in the pipeline both in Hanoi and Ho Chi Ming City. Sumitomo Corporation will continue to aggressively pursue opportunities in Vietnam's growing market, including a proposed North-South Express Railway, as well as railroad-related projects in other countries.
*Civil Engineering Construction Corporation No.6 (CIENCO6): A leading, local general construction company owned by the Ministry of Transport.
[Ho Chi Minh City Metro Line 1]