HCMC, May 18, 2012. – The Asian Development Bank (ADB) will lend an additional US$500 million to HCMC to develop the underground section of Metro Line No. 2.
A trial run of the metro line is expected to take place in 2017. Work on the underground tunnel and stations, funded by ADB, will start in April 2013 before the main component gets off the ground in June 2013.
Fencing and ground leveling in Tham Luong Depot in District 12 began in August 2010 and is planned for completion in the third quarter this year. Site clearance, however, has yet to be finished.
Underground stations and two tunnels will be built underneath the streets of Truong Chinh, Cach Mang Thang Tam, Pham Hong Thai and Ham Nghi to reduce the need for land clearance, said Nguyen Van Quoc, head of the management authority for the Metro Line No. 2 project.
The proposed map of Ho Chi Minh City Metro Line 2 (Red Line) – Ben Thanh Market – Tham Luong Depot
Regarding the capital for the project, the loan agreements for the first loan of ADB and those provided by the German development bank KfW and the European Investment Bank (EIB) have been completed with total capital of US$ 548 million.
The HCMC Management Authority for Urban Railways signed a contract for design consultancy in January this year and another for management consultancy and project execution in May. The lending agreement for the second loan of ADB will be signed in August.
Metro Line No. 2, stretching nearly 20 kilometers, connects Thu Thiem New Urban Area in District 2 and An Suong Coach Station in District 12. During the first phase, the city will develop the 11-km section running from Ben Thanh Market in downtown HCMC to Tham Luong Depot in District 12, including a 9.3-km underground part.
The project requires a total of US$ 1.37 billion, in which ADB will finance a combined US$ 540 million, KfW US$ 313 million and EIB US$ 195 million. The remainder will be sourced from Vietnam’s budget.
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ADB to lend US$500 million to city’s second metro line, Saigon Times, May 18, 2012