Th e 20-km-long Ben Th anh-Suoi Tien metro line in HCMC is an example. With an initially estimated cost of US$1.1 billion, the project was at first scheduled for construction in 2005 and operation in 2010.
However, work did not start on this project until last month, and its cost has now increased to US$2.4 billion, according to the HCMC Management Authority for Urban Railways.
Similarly, the cost of the Nhon- Hanoi Station urban railway project funded by France, the Asian Development Bank (ADB) and European Investment Bank has risen by nearly 65% to around 1.3 billion euros from the originally projected 783 million euros, according to the Hanoi government. This urban railway project was officially kicked off in September, 2010 though the first components were constructed back in 2006.
Several other transport projects are in the same situation with construction costs increasing heftily compared to the initial costs when approved.
According to the Ministry of Transport, in the past three to six years, the total investment costs of transport projects while being implemented have jumped by an average of 180% versus the approved costs.
Among these projects, the first phase of Ho Chi Minh Road has seen a cost overrun of 292% while a 50-80% range is seen at many expressway projects such as Saigon- Trung Luong, Cau Gie-Ninh Binh and Quan Lo-Phung Hiep.