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Hanoi urban railway project failure

Project failure due to external influences and bad cash flow management

18 March 2016 – A new resource has been added to the PM World library related to Project Failures.  The resource is titled “Hanoi urban railway project”.

160318 - Mitchell - Hanoi IMAGELocated in Hanoi, Vietnam, The Union Express travels from Hanoi to Ho Chi Minh City, stopping at cities and towns along the route. The project broke ground October 2011 and is scheduled for completion 2020.

“Giang attributed the sluggish progress to the Lunar New Year holiday that concluded last month, when workers returned home for celebration and only a few of them got back to work after that, and a VND400 billion (US$17.86 million) debt the group owes to its sub-contractors.” “While the sub-contractors have already brought equipment, machinery and employees to the construction sites, work could not get started due to the lack of money, according to the Vietnamese official.”

In November 2014, the transport ministry proposed that the total investment be increased to $868.04 million due to a cost overrun during the course of construction. The project has been hit by several scandals, including a fatal accident in November 2014, since ground breaking.

To access this new resource, go to https://pmworldlibrary.net/major-projects-programmes/, click on “Failed Projects”, scroll down to Vietnam and click on “Hanoi Urban Rail Project”. Must be a registered professional member to access.

Posted by: Gary Mitchell          

 

 

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