ADB, EIB Sign $760M Loan for Metro Route Project in Vietnam Biggest City

The Asian Development Bank (ADB) and the European Investment Bank (EIB) will loan a total $760 million to the metro route No. 5 project in Vietnam’s southern economic hub of Ho Chi Minh City. A memorandum of understanding (MoU) to this effect was signed in HCM City on March 13 between Vice Chairman of the municipal People’s Committee Nguyen Huu Tin and representatives from the two banks. ADB has pledged to provide $500 million while EIB will provide EUR200 million ($260.51 million), state media reported on Mar 15. The 17km route will link the Sai Gon Bridge and the new Can Giuoc bus station. A depot for engine maintenance will be built on an area of 25 ha. In the first phase of the project, an 8.8 km section from Bay Hien crossroads in Tan Binh district to Saigon Bridge in Binh Thanh district will be constructed at a cost of more than $857 million. Once completed, the new metro is expected to handle about 526,000 passengers everyday according to the HCM City Management Authority for Urban Railway. (Thoi Bao Kinh Te – Economic Times Mar 15 p3, Phap Luat TPHCM – HCM City Law Mar 15 p4, vietnamplus.vn Mar 14)