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Officials approve JBIC-funded, $1-billion urban railway project

Update: April, 11/2007 - 00:00

Officials approve JBIC-funded, $1-billion urban railway project


HCM City — The municipal People’s Committee has approved a US$1.09-billion metro railway project.

The project’s two lines will travel a total of 19.7 kilometres from Ben Thanh Market in District 1 to Suoi Tien Park and will be primarily funded via a $904-million official development assistance (ODA) loan from the Japan Bank for International Co-operation (JBIC).

The remaining $186 million will come from city coffers.

Nguyen Viet Son, deputy manager of the Department for Transport and Public Works, said construction will begin next year.

The railway system’s first line runs underground in District 1 through the intersection of Le Loi and Pasteur to Nguyen Sieu Street, while the second is at road level, running 17.1km from Van Thanh canal to Long Binh depot.

The Ministry of Planning and Investment and People’s Committee have agreed to use JBIC’s special terms for economic partnership (STEP).

As per STEP conditions, the project must apply Japanese urban railway standards, while JBIC has agreed to provide the ODA loan with a 40-year repayment term and 10-year grace period for construction.

City officials expect the mammoth project to be ready for traffic in 2012. — VNS

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