The Asian Development Bank will provide a loan package of 500 million USD for Ho Chi Minh City to build its Metro Line No 2 (MRT2).
An agreement to this effect was signed on July 4 by representatives of the ADB and the State Bank of Vietnam (SBV) in Ho Chi Minh City.
This is the second loan package for construction of an 11.3-km section of MRT2, which will run from Ben Thanh Market in District 1 through Tan Son Nhat Airport to Tham Luong in District 12. The section will have 14 stations.
Nguyen Huu Tin, Deputy Chairman of the HCM City People's Committee, said the MTR2 will be 20km long in total, starting from the Thu Thiem Area in District 2 and ending at the Tay Ninh Bus Station.
Construction of the line will be undertaken in two phases. The first one will cover the section from Ben Thanh Market to Tham Luong; and the second will cover two sections - from Ben Thanh to Thu Thiem and Tham Luong to the Tay Ninh Bus Station, said Tin.
The first phase requires an investment of around 1.37 billion USD, which will be sourced through loans from the ADB (540 million USD), the German Development Bank (240.75 million EUR or 313 million USD) and the European Investment Bank (150 million EUR or 195 million USD). The Vietnamese Government will provide counter capital of 326.5 million USD.
Agreements for the project's first loan packages were signed in 2011 between the same parties.
Speaking at the July 4 signing ceremony, SBV Governor Nguyen Van Binh appreciated ADB's support for urban transportation development in HCM City.
Tomayuki Kimura, Country Director of ADB, praised the decision of the Vietnamese Government and the HCM City administration to invest in the development of rapid mass passenger transport systems in HCM City.
The project to develop the metro system will help Vietnam become one of first countries in the region to address climate change impacts by using means of transport which discharge less carbon gases, Kimura said.
HCM City residents will also benefit from cheaper and more efficient public transportation services, he added.-VNA
An agreement to this effect was signed on July 4 by representatives of the ADB and the State Bank of Vietnam (SBV) in Ho Chi Minh City.
This is the second loan package for construction of an 11.3-km section of MRT2, which will run from Ben Thanh Market in District 1 through Tan Son Nhat Airport to Tham Luong in District 12. The section will have 14 stations.
Nguyen Huu Tin, Deputy Chairman of the HCM City People's Committee, said the MTR2 will be 20km long in total, starting from the Thu Thiem Area in District 2 and ending at the Tay Ninh Bus Station.
Construction of the line will be undertaken in two phases. The first one will cover the section from Ben Thanh Market to Tham Luong; and the second will cover two sections - from Ben Thanh to Thu Thiem and Tham Luong to the Tay Ninh Bus Station, said Tin.
The first phase requires an investment of around 1.37 billion USD, which will be sourced through loans from the ADB (540 million USD), the German Development Bank (240.75 million EUR or 313 million USD) and the European Investment Bank (150 million EUR or 195 million USD). The Vietnamese Government will provide counter capital of 326.5 million USD.
Agreements for the project's first loan packages were signed in 2011 between the same parties.
Speaking at the July 4 signing ceremony, SBV Governor Nguyen Van Binh appreciated ADB's support for urban transportation development in HCM City.
Tomayuki Kimura, Country Director of ADB, praised the decision of the Vietnamese Government and the HCM City administration to invest in the development of rapid mass passenger transport systems in HCM City.
The project to develop the metro system will help Vietnam become one of first countries in the region to address climate change impacts by using means of transport which discharge less carbon gases, Kimura said.
HCM City residents will also benefit from cheaper and more efficient public transportation services, he added.-VNA
