One lane on Trần Hưng Đạo Street is closed for the construction of a metro station. – VNA/VNS Photo Huy Hùng

HÀ NỘI – Hà Nội is set to invest more than VNĐ40 trillion (US$1.72 billion) in a third metro line connecting Hà Nội Railway Station with the outlying district of Hoàng Mai from 2021 to 2025.

Nearly VNĐ34.3 trillion ($1.47 billion) will be allocated from official development assistance (ODA) and the remaining VNĐ6.2 trillion ($266.6 million) will be from the city’s budget.

The line will link May 1 Square on Trần Hưng Đạo Street with Pháp Vân Viaduct on the Belt Ring Road No.3, running through the streets of Trần Hưng Đạo, Trần Thánh Tông, Kim Ngưu and Nguyễn Tam Trinh.

Seven stations will be located on Hàng Bài, Trần Thánh Tông, Kim Ngưu, Mai Động, Tân Mai, Tam Trinh and Yên Sở streets. A depot area spanning 10ha will be set up behind Yên Sở Pump Station.

A total area of 24.83ha will be affected.  

The Hà Nội Railway Station–Hoàng Mai Metro is a national key project which needs to be evaluated by the Government and approved by the National Assembly.

However, as Hà Nội is the investor, the city’s People’s Council will have to decide to include it on the list of investment projects with the local government’s loans.

The Asian Development Bank (ADB) has pledged to sponsor $450 million.

In March, ADB confirmed that it would include the project in the bank’s loan portfolio, if Hà Nội chooses to invest in the project in the form of ODA.

Others agencies including German state-owned development bank KfD, French Development Agency AFD, the French Government and World Bank have shown their interest in financing the remaining ODA capital of the project.

On the reciprocal capital of VNĐ6.2 trillion, Hà Nội expects the budget revenue in the period of 2021-2025 will reach an average of VNĐ353 to 358 trillion ($15.1 to 15.3 billion) a year.

It is set to start repaying loans from 2026, after the project’s completion and the grace period from five years to ten years. – VNS