Sunday,  Sep 23, 2018,23:52 (GMT+7) 0 0
Hanoi seeks Govt nod for three metro lines
Thursday,  Apr 12, 2018,22:55 (GMT+7)

Hanoi seeks Govt nod for three metro lines

HCMC – Hanoi City is seeking approval from the central Government to develop three metro lines costing billions of U.S. dollars between now and 2025, news website Dan Tri reports, citing a document from the city government.

Nguyen Duc Chung, chairman of the capital city, sent a proposal to the Prime Minister asking for instructions regarding investment policies for the three projects.

In the proposal, the chairman noted that under the city’s master plan for traffic infrastructure development until 2030, the city will focus on developing mass rapid transit to control environmental pollution and ensure energy efficiency. Urban railways would account for 10-15% of public transport by 2020 and 25-30% by 2030 and the proportion should be 35-40% after 2030.

Therefore, the implementation of the three metro projects is of paramount importance. Construction on metro lines No. 2, No. 5, and No. 3 should be executed between now and 2024 or 2025.

Metro Line No. 2 will connect Tran Hung Dao and Thuong Dinh, and the entire route of 5.96 kilometers will go underground and have six stations. The city expects to start work on the project this year so that it can be up and running by 2025.

The project will require nearly VND28 trillion, or US$1.23 billion, under build-transfer (BT) format, or around VND26,000 billion if funded by the State budget.

Metro Line No. 5 will connect Van Cao and Hoa Lac with a total length of 38.4 kilometers. It will consist of 8 km of underground track, 2 km of elevated track, and 28.4 km of track on the ground, and have 21 stations and two depots.

The project will likely start construction in 2018, and be put into operation in 2025. The project is worth some VND67 trillion, or about US$2.95 billion, if executed under the build-transfer method, or VND61.23 trillion if funded by the State.

Both projects are proposed by Vingroup.

Meanwhile, Metro Line No. 3 will connect Hanoi Station and Hoang Mai. It has a total length of 8.7 km, with an 8.13-km underground section plus a 570-meter tunnel leading to the depot.

Hanoi City People’s Committee will serve as investor of this project. The project should also start construction in 2018 for completion in 2025, and will be put into operation one year later. The project needs a total investment of nearly VND39 trillion.

In order to raise funds for these three metro lines, the city proposed a special mechanism to create funds for such projects. Specifically, Hanoi seeks the Government’s approval for retaining all surpluses over the targeted budget revenue, proceeds from equitization of State-owned enterprises before 2017, and make use of all money the city can save from its regular spending.   

The city government also proposed auctioning State assets in the city such as houses and land, and issue municipal bonds in accordance with the limit allowed by the Government in order to fund the three projects.

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