The German Reconstruction Bank (KfW), the Asian Development Bank (ADB) and the European Investment Bank (EIB) will provide a combined $1.068 billion in loans for a metro project in Ho Chi Minh City. A memorandum of understanding to this effect was signed by Deputy Chairman of the municipal People’s Committee Nguyen Thanh Tai and officials from the three donors last week, the Thoi Bao Kinh Te Sai Gon newspaper reported March 20. Of the total loan, the KfW will finance EUR240.75 million and the ADB and the EIB will fund $540 million and EUR150 million, respectively. The city is seeking German investors to act as an engineering, procurement and construction (EPC) contractor to build the 19.7-km underground route 2 linking Ben Thanh with Suoi Tien. Construction on the route will be divided into two phases with the first forecast to cost $1.247 billion. The city will make the feasible study for the second phase to seek fund from the ADB. Work on project is scheduled to be kicked off late April.
