EIB lends over $200 mln for southern metro project

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The European Investment Bank (EIB) will provide Vietnam a loan of 150 million euros (US$200.15 million) for the metro project in Ho Chi Minh City.

 

Under the agreement signed Monday, Vietnam will contribute $326.5 million to the second of six metro rail routes planned for the southern hub.

 

Meanwhile, the Asian Development Bank and the German-owned Entwicklungsbank will provide funding of $540 million and $313 million respectively.

 

Work began in August on the 20-kilometer track which will connect the Thu Thiem New Urban Area in District 2 with the An Suong Bus Station in Hoc Mon District when it goes into operation in 2016.

 

The first line broke ground in February, 2008 with an initial investment of $1 billion. City authorities in this July asked that the investment be adjusted to $2.5 billion, citing inflation.

 

Under a plan to develop HCMC's traffic and transport infrastructure through 2020, the city will build six metro rail lines covering a total length of 109km. The project is expected to cost $7.5 billion.

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