Daelim Signs USD 84 Million Contract for Hanoi Light Rail Transit System Project
DATE 2014.04.11
VIEW 4758
Daelim Signs USD 84 Million Contract for Hanoi Light Rail Transit System Project
Daelim signed on April 11, 2014 an USD 84 million (KRW 86.8 billion) contract to build a light rail transit system ordered by Vietnam for the first time. Daelim announced that they are set to build an elevated railway section for the Hanoi rapid rail transit system No. 3 Line with MBR(Hanoi Metropolitan Railway Management Board). Daelim CEO Kim Dong-su, MBR Director Nguyen Quang Manh, and high-ranking officials of the Hanoi People’s Committee attended the contract signing ceremony.
This project involves building an elevated railway bridge in a section spanning about 8.5km, where the light rail tram is operated from the Hanoi Nhon depot to the vicinity of Daewoo Hotel. Construction will kick off next month and will take about 30 months. To address the problem of severe traffic congestion in large cities like Hanoi and Ho Chi Minh, Vietnam is actively implementing the light rail transit system and subway projects. Plans to build 8 new city railways in Hanoi alone are underway. The No. 3 Line constructed by Daelim is a core line connected to the city center of Hanoi.
By winning the project, Daelim can spur the diversification of overseas construction types. The company expands and reorganizes its overseas businesses, which have been concentrated on the oil refinery and power plant fields, by inking contracts to build a long bridge in Brunei and Libya International Airport Terminal last year as well as on civil works and construction/housing sectors.
Daelim posted a remarkable record in Vietnam in the past. On January 28, 1966, Daelim bagged an USD 877,000 contract to build Vietnam’s RACH-GIA Port ordered by the US’s OICC and received USD 45,000 as advance on the construction in early February 1966, the first foreign currency acquisition through overseas construction.
“This project has profound meaning since it is Daelim’s first city railway construction project. We plan to focus on winning projects in Southeast Asia and Middle East by concentrating our expertise and professionalism on the civil works field including special bridge, dam, city railway, and port, where we have strengths,” Daelim CEO Kim Dong-su said.
