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Rising steel prices could delay work on new MRT lines

The Taipei City Government yesterday expressed concern over the construction of the Xinyi and Songshan MRT lines because of recent hikes in the price of steel and urged the central government to discuss solutions with the city government to prevent any further delays.

The Xinyi and Songshan MRT lines, which are scheduled to be completed in 2012 and 2013 respectively, are NT$10 billion (US$300 million) over budget and suppliers are refusing to provide a large quantity of steel bars.

"Increases in the price of construction materials pose a threat to MRT construction plans and we hope that the central government can share the responsibility to help us solve this difficult situation," Tom Chang (常歧德), chief of the Taipei Department of Rapid Transit Systems, said yesterday at a construction site on the Songshan MRT line.

Chris Lien (連維辰), executive deputy project manager of a construction company working on the Songshan MRT line, said the price of steel bars had increased from NT$15,000 per tonne to NT$30,000 per tonne over the last two years and that the number of steel bars provided by suppliers was only sufficient for three weeks of construction.

Taipei Mayor Hau Lung-bin (郝龍斌) promised yesterday to provide NT$5 billion to help reduce the financial burden on the construction company and called on the central government to take responsibility for the other half of the budget shortfall.

Chang said the central government should establish a unified purchase and supply system for steel bars and other materials in the face of continuous price increases.

Hau said the city government would hold meetings with suppliers and the MRT construction companies this week to discuss the price issue and try to seek temporary solutions.
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