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Wednesday, June 19, 2024

Hanoi needs US$55 billion for urban rail network development by 2045

The Saigon Times

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HCMC – Hanoi City will need US$55.4 billion for developing 15 urban rail lines with a combined length of 594 kilometers by 2045, according to a recent city planning document.

The urban rail development plan will be carried out in phases. By 2030, Hanoi will construct 96.9 kilometers of rail at a cost of US$16.2 billion, and an additional 301 kilometers, with an estimated cost of US$20.9 billion, will be completed by 2035. By 2045, the network will expand by another 196.2 kilometers at an expected cost of US$18.2 billion.

Nguyen Cao Minh, head of the Hanoi Metropolitan Railway Management Board (MRB), highlighted the urban railway system’s significance for the city’s transport infrastructure.

He said that the development is crucial for supporting Hanoi’s socio-economic growth, urban development, environmental protection, and industrialization. The city aims for public transport to handle 50-55% of commuter needs by 2035 and increase to 65-70% thereafter.

Funding projections show that Hanoi will secure US$11.5 billion in public investment funds by 2030 but will face a shortfall of US$4.6 billion. By 2035, the expected funding gap is projected at US$3.97 billion. The city anticipates balancing its financial needs by 2040, with US$29.21 billion available against a requirement of US$18.26 billion.

To bridge these financial gaps, Hanoi will seek substantial support from the central Government, requiring a total of US$8.61 billion in allocations from the central Government by 2035. This includes US$5.52 billion from 2026 to 2030 and US$4.59 billion from 2031 to 2035. Post-2035, the city can independently secure the necessary funds for ongoing metro development.

Minh noted that these financial estimates are preliminary and subject to change as project planning advances to ensure safety and operational efficiency.

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