The second metro line is expected to be completed by 2030. — VNA/VNS Photo

HCM CITY — Hồ Chí Minh City has decided to shift funding for Metro Line No. 2 (Bến Thành – Tham Lương) from official development assistance (ODA) loans to the city’s budget to speed up project implementation.

The metro line, which spans over 11km with 10 stations, was originally approved in 2010 and revised in 2019 with a total investment of over VNĐ47.9 trillion. It was initially planned to be financed through ODA loans from the Asian Development Bank (ADB), the German Development Bank (KfW), and the European Investment Bank (EIB).

However, delays in securing funds arose as the lenders changed loan conditions and review processes. By the end of September 2024, all three financial institutions confirmed they would no longer provide funding for the project. In response, the HCM City People’s Committee decided in late November 2024 to use the city’s budget for the metro line.

According to the HCM City Urban Railway Management Board (MAUR), switching to local funding is expected to streamline procedures and expedite the project’s progress. If the bidding process is carried out alongside project adjustments, the main construction package could begin as early as 2026.

The metro line is expected to be operational by 2032.

To meet financial requirements, the city plans to mobilise VNĐ30.7 trillion from the 2026-2030 medium-term budget and issue local government bonds, replacing the previously planned ODA loans.

The project includes seven main construction packages, but only one - CP1, which involved building the administrative office at Tham Lưng depot - has been completed and operational since 2017.

The 11-kilometer metro route will pass through six districts - 1, 3, 10, 12, Tân Bình, and Tân Phú - featuring nine underground stations and one elevated station.

Metro Line No. 2 is a key part of HCM City’s public transport network and is expected to improve urban mobility, reduce congestion, and boost socio-economic development. — VNS