LOAN AGREEMENT FOR HO CHI MINH CITY METRO LINE NO.2 CONSTRUCTION PROJECT

Route 2: Ben Thanh – Tham Luong

Loan Agreement for Ho Chi Minh City metro line No. 2 construction project

On June 28, the Prime Minister issued Official Letter 1037/TTg-QHQT requesting the President to consider and ratify the Loan Agreement for Ho Chi Minh City Metro Line No. 2, Ben Thanh - Tham Luong Line construction project (1st loan) to be signed with the Asian Development Bank (ADB).

Previously authorized by the Prime Minister, on March 11, 2011 in Hanoi, the Governor of the State Bank of Vietnam signed with the representative of ADB in Vietnam the Loan Agreement for Ho Chi Minh City Metro Line No. 2, Ben Thanh - Tham Luong Line construction project (1st loan). The project is also known as Ho Chi Minh City's No. 2 high-volume rapid transit investment program.

According to the negotiated loan agreement, ADB will finance 40 million USD for phase 1 and the rest will be financed in the period of 2011 - 2012. The ADB's loan of 40 million USD from OCR has a term of 20 years, grace period is 6 years.has a term of 20 years, grace period of 6 years.

The first loan is focused on the preparation of the construction of Line 2 such as the depot area and consulting and supporting services for project implementation.

The host agency of the project is the People's Committee of Ho Chi Minh City, the implementation period is from 2011 to 2016.

Speaking at the ceremony, Deputy Prime Minister Hoang Trung Hai emphasized that this project had many economic and social meanings for the whole country. This was a breakthrough in the development of transport infrastructure and was a driving force for the development of the southern key economic region (Ho Chi Minh City - Dong Nai - Ba Ria - Vung Tau). The Deputy Prime Minister asked the central ministries and departments to contribute to helping the project complete the target, and the districts and people in the project area to support site clearance so that the project could be completed on schedule and with quality.

Ambassador of the Federal Republic of Germany, Mr. Rolf Schulze said that the harmful effects of environmental pollution are causing global climate change, so the construction of metro line No. 2 in Ho Chi Minh City has great significance in solving the problem. environmental pollution. In this project, the Federal Republic of Germany will provide wagons and carry out consulting services and technology transfer and in the near future will implement contracts that will be signed with Ho Chi Minh City.

Director of the Asian Development Bank (ADB) in Vietnam, Mr. Koshimi, said that the city invested in building a metro line with a large capacity at the right time to increase the demand for public transport in Ho Chi Minh City by 50% and solve the problem of traffic congestion in the city. In order to achieve a higher goal that is more people using public transport, Ho Chi Minh City needs to develop synchronously many forms of public transport and have policies and measures to encourage people to use public transport to ensure the sustainable development of the city's public transport system.

According to the plan, subway line 2 has the starting point of An Suong bus station (also known as Tay Ninh bus station), going along Truong Chinh, Cach Mang Thang Tam, Pham Hong Thai, Ben Thanh, Ham Nghi streets, crosses the Saigon River to Thu Thiem new urban area, and ends at the North-South high-speed railway station (to be built here). Thus, metro line 2 will connect the northwest area of ​​the city, the new urban area of ​​District 12, Tan Phu District, Tan Binh District, areas with high population density such as Bay Hien, Ong Ta junction and Areas along the route often experience traffic jams on Cach Mang Thang Tam Street (District 3, District 10) with the city center.

Metro model

Mr. Hans Farnhammer - First Secretary of Economic Cooperation of the Delegation of the European Union (EU) to Vietnam, emphasized that the EU supports the city's investment in metro lines using electric energy to contribute to reducing emissions in traffic. According to Mr. Nguyen Thanh Tai - Vice Chairman of Ho Chi Minh City People's Committee, the successful implementation of this project will contribute to promoting economic development and creating stability in people's lives. Mr. Nguyen Thanh Tai also expressed the gratitude of the City People's Committee to the people who carried out the relocation for the success of this project.

According to Mr. Nguyen Do Luong - director of the Ho Chi Minh City Urban Railway Management Board, the construction of Tham Luong depot on an area of ​​22.3 hectares has a total investment of VND 19 billion.

According to the plan, the city will build 7 depots for six subway lines (metro) and three depots for 3 tram lines running on the ground (monorail).

The Ben Thanh - Tham Luong metro line project has a total investment of USD 1.24 billion, gathered from many investment sources. In which, ODA loan from Asian Development Bank is USD 540 million, from German Reconstruction Bank (KFW) is 313 million USD, from European Investment Bank (EIB) is 195 million USD and from the city budget is 198.9 million USD.

According to the plan, the project technical design consultant will be selected by December 2010, construct a route for metro 2 in 2012 and put it into operation in 2016.