HCM City Starts Negotiating $40M ADB Loan for Metro Route Project

Authorities of Vietnam’s southern economic hub of Ho Chi Minh City Sept 26 worked with officials from the Asian Development Bank (ADB) on a $40 million loan for metro route No.2. The loan will be used for the first phase which focuses on preparation, consultancy service and support for Ben Thanh-Tham Luong route. Ben Thanh-Tham Luong will require a cost of nearly $1.4 billion, which are expected to come from ADB, the German Reconstruction Credit Institute (KfW) and the European Investment Bank (EIB). The second metro route was designed to have length of 20 kilometers, beginning at Thu Thien and ending in An Suong Bus Station. The project will be divided into two phases, with the first phase focusing on construction of 11-kilometer section from Ben Thanh market to Tham Luong with 11 stations. It is scheduled to be carried out from now to 2016. Earlier, Nguyen Van Giau, former Governor of Vietnam State Bank and Ayumi Konishi, ADB Country Director in Vietnam signed a loan agreement worth $540 million for the project. (Saigon Giai phong – Saigon Liberation Sept 27 p3)