Vietnam cancels ADB loan for Ho Chi Minh City's second metro line

VnExpress | Nguyen Hoai Monday | 08/24/2020 20:44

Motorbike drivers pass by an area where a station of the Ho Chi Minh City Metro Line 2 is planned to be constructed in Tan Binh District, Ho Chi Minh City. Photo by VnExpress/Huu khoa.

Vietnam has decided to cancel a $390-million loan from the Asian Development Bank meant to fund the second metro line in Ho Chi Minh City.

It reduces ADB funding for the Ben Thanh – Tham Luong metro route to $150 million.

The government has been reviewing, restructuring and canceling loans it think are not needed from foreign countries and multilateral organizations.

It has now tasked Ho Chi Minh City with mobilizing funding for the project.

The Ben Thanh – Tham Luong line will run 11 kilometers from Districts 1 to 12, 9.2 km underground, and have 10 stations.

Vietnam has signed agreements with three foreign banks to fund the project: German state-owned KfW ($313 million), the European Investment Bank ($195 million) and the ADB.

The cost has now increased to VND47.9 trillion ($2 billion) from the earlier VND26 trillion ($1.1 billion), with the construction planned between 2021 and 2026.

It is expected to serve 140,000 passengers a day on average.