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ADB to lend Vietnam metro US$500 mln for subway project

The Asian Development Bank will loan Ho Chi Minh City US$500 million to build its Metro Line No. 2, Vietnam News Agency reported.

An agreement to this effect was signed Thursday by representatives of ADB and the State Bank of Vietnam (SBV) in HCMC.

It is the second loan package earmarked for the construction of an 11.3-km section of the Metro Line No.2.

The section will include 11 stations stretching between Ben Thanh Market in District 1 and Tham Luong in District 12 .

Nguyen Huu Tin, deputy chairman of HCMC People's Committee, said the Metro Line No.2 will be 20km long in total, starting from the Thu Thiem area in District 2 and ending at the Tay Ninh Bus Station.

An agreement on the project's first loan package was signed in 2011 by ADB and SBV.

Tomayuki Kimura, Country Director of ADB, praised the decision of Vietnam's government and the HCMC administration to invest in the development of rapid mass transit.

The project to develop the metro system will help Vietnam become one of first countries in the region to address climate change by using a means of transport that releases less carbon gases, Kimura said.

HCMC residents will also benefit from cheaper, more efficient public transportation, he said.