Hanoi People’s Council Chairwoman Phùng Thị Hồng Hà delivers her closing remarks. — VNA/VNS Photo Văn Điệp

HÀ NỘI — Hà Nội’s People’s Council on Wednesday approved a resolution introducing special investment mechanisms to accelerate the construction of five urban railway lines, as the city seeks to develop a modern public transport network by 2030.

The five lines, No. 1, 2, 8, 10 and 14, will cover a combined distance of 253km and be implemented under turnkey contracts, Hà Nội People’s Committee Chairman Vũ Đại Thắng told the council. 

Total investment in the city’s urban railway network during 2026-2030 is expected to exceed VNĐ1 quadrillion (US$38.9 billion), including around VNĐ900 trillion ($35 billion) for the five lines, he said.

The city plans to mobilise funding from its own budget, central government support, official development assistance loans, bond issuance and revenue from land development around public transport hubs under the transit-oriented development (TOD) model.

Thắng said the city would impose strict cost controls, including a benchmark contract ceiling of $120 million per kilometre for underground sections, excluding certain costs outside the contractual scope.

The authorities will also tighten oversight of advance payments to ensure funds are used solely for their intended purposes and are not diverted to other projects or contractors’ private business activities.

Main contractors will be held accountable for construction quality, progress and investment efficiency, while the city will strengthen supervision throughout the project cycle, from design and technology selection to construction and commissioning.

The resolution also requires technology transfer and training for engineers, technical staff and railway operations and maintenance personnel to be carried out alongside construction.

Vice chairman of the municipal People’s Committee Trương Việt Dũng said revisions to the draft had clarified the respective responsibilities of investment decision-makers, project owners and strategic contractors.

The draft also removed a proposed requirement for contractors to demonstrate minimum financial resources of VNĐ60 trillion, replacing it with a requirement to prove their financial capacity and ability to arrange funding in accordance with regulations.

Other revisions strengthened provisions on advance payment guarantees, contract performance bonds, cash-flow management and price adjustments.

People’s Council Chairwoman Phùng Thị Hồng Hà said the resolution would provide a basis for accelerating the five projects, easing traffic congestion and supporting Hanoi’s long-term urban development.

She urged the municipal government to promptly establish implementation plans, assign clear responsibilities and deadlines, and strengthen oversight to prevent delays, financial losses and waste. — VNS