ADB to lend US$500 million to city’s second metro line

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SaigonTimes English - 31 month(s) ago 14 readings

ADB to lend US$500 million to city’s second metro line

HCMC – The Asian Development Bank (ADB) will lend an additional US$500 million to HCMC to develop the underground section of Metro Line No. 2.

ADB to lend US$500 million to city’s second metro line

By Anh Quan - The Saigon Times Daily

The signing of a memorandum of understanding on the second ADB loan for HCMC’s Metro Line No. 2 project takes place at City Hall on Thursday - Photo: Nguyen Trung
HCMC – The Asian Development Bank (ADB) will lend an additional US$500 million to HCMC to develop the underground section of Metro Line No. 2.

This will be the regional bank’s second loan for the Metro Line No. 2 project. A memorandum of understanding to this effect was signed between the HCMC government and ADB on Thursday.

A trial run of the metro line is expected to take place in 2017. Work on the underground tunnel and stations, funded by ADB, will start in April 2013 before the main component gets off the ground in June 2013.

District authorities are undergoing necessary procedures to carry out site clearance compensation and resettlement within this year. The cost of compensation and resettlement is estimated at over VND2.3 trillion.

Fencing and ground leveling in Tham Luong Depot in District 12 began in August 2010 and is planned for completion in the third quarter this year. Site clearance, however, has yet to be finished.

Underground stations and two tunnels will be built underneath the streets of Truong Chinh, Cach Mang Thang Tam, Pham Hong Thai and Ham Nghi to reduce the need for land clearance, said Nguyen Van Quoc, head of the management authority for the Metro Line No. 2 project.

Regarding the capital for the project, the loan agreements for the first loan of ADB and those provided by the German development bank KfW and the European Investment Bank (EIB) have been completed with total capital of US$548 million.

The HCMC Management Authority for Urban Railways signed a contract for design consultancy in January this year and another for management consultancy and project execution in May. The lending agreement for the second loan of ADB will be signed in August.

Metro Line No. 2, stretching nearly 20 kilometers, connects Thu Thiem New Urban Area in District 2 and An Suong Coach Station in District 12. During the first phase, the city will develop the 11-km section running from Ben Thanh Market in downtown HCMC to Tham Luong Depot in District 12, including a 9.3-km underground part.

The project requires a total of US$1.37 billion, in which ADB will finance a combined US$540 million, KfW US$313 million and EIB US$195 million. The remainder will be sourced from Vietnam’s budget.

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