ADB puts US$ 1.1 billion towards transport projects in Vietnam
14 December 2010
The Asian Development Bank (ADB) has given the green light to a US$ 1.1 billion package providing finance for two transportation projects in the largest city in Vietnam, Ho Chi Minh City.
The ADB will provide US$ 540 million towards a US$ 1.4 billion project to construct a second metro line in Ho Chi Minh City, and put US$ 636 million towards a total US$ 1.6 billion project to construct a modern expressway to the south of the city.
The 11.3 km metro rail line will link Ben Thanh Market in central Ho Chi Minh City to Tham Long, stopping at the Tan Son Nhat International Airport on the way.
The project, which involves 9.3 km of tunnels and 2 km of elevated and transition track, is planned to be operational by 2017.
In addition to the ADB funds, the European Investment Bank has pledged US$ 195 million towards the metro line.
German development bank KfW Bankengruppe is funding US$ 313 million of the total cost and the Vietnamese government is funding the remaining US$ 326.5 million.
A second metro line is also currently under development, boosted by funds from the Japan International Co-operation Agency.
Meanwhile, the second transport project to receive funding from the ADB is a new 57 km expressway linking Ben Luc on the West of the Ho Chi Minh greater city area, and Long Thanh on the eastern side of the city.
On top of the ADB funds, the Japanese government is providing US$ 635 million towards the expressway, while the government of Vietnam is funding the remaining US$ 337 million.
The route is also expected to open in 2017.
The population of the greater Ho Chi Minh City area is expected to grow from its current 9 million to almost 14 million by 2025, according to the ADB.