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Proposal for $30 billion loan for urban railway

Báo Thanh niênBáo Thanh niên27/11/2023


"We have been working too slowly recently. We have only completed one route in 15 years, and it has not yet been put into commercial operation. Ho Chi Minh City has 7 more routes. If we continue to do so slowly, it will not be completed in 100 years," said Mr. Dung.

Tàu metro số 1 tuyến Bến Thành - Suối Tiên  chạy thử nghiệmẢnh: Nhật Thịnh

Metro train No. 1 Ben Thanh - Suoi Tien line on trial run

According to the Minister, Ho Chi Minh City can propose to borrow a separate amount, separate it, borrow it, manage it and pay it back, which will be faster. The most important thing is to exploit underground space and above-ground space according to the TOD model. Underground space and above-ground space are money, so there is no fear of not being able to repay the debt.

"HCMC can borrow 30 billion USD, and do it in 10-15 years to exploit resources and solve traffic problems. Not to mention, exploiting underground space well, bringing many activities underground can also solve the problem of environmental pollution," he said and added:

"HCMC needs stronger, bolder and more drastic policies. We will work with ministries and agencies to coordinate with the city to develop policy mechanisms for early implementation," the Minister of Planning and Investment added.

Going into specific issues, Prime Minister Pham Minh Chinh agreed with the development of a master plan for the development of Ho Chi Minh City's urban railway, on that basis mobilizing large capital sources to complete it, rather than doing small, fragmented projects.

Because, according to the explanation, the overall project will help shorten the process, reduce waste of time and administrative procedures. The Prime Minister shared that in a recent meeting with the President of the World Bank, the two sides agreed on this method to turn the situation around. "Like the 200 km urban railway of Ho Chi Minh City, if we do it in sections, in each route, it will not only waste time on administrative procedures, but also not have a comprehensive, consistent solution," the Prime Minister emphasized.

According to the plan, Ho Chi Minh City has 8 urban railway lines and 3 tram lines or monorails with a total length of about 220 km, with a total investment capital of more than 25 billion USD. However, up to now, Ho Chi Minh City only has line 1 (Ben Thanh - Suoi Tien) with a length of 19.7 km, expected to be completed by the end of 2023, and line 2 (Ben Thanh - Tham Luong) which will start construction in 2024 and be completed in 2032. Other lines are only at the stage of investment preparation and calling for investment.

Meanwhile, Conclusion 49 of 2023 of the Politburo sets the goal of completing the urban railway network in Ho Chi Minh City by 2035. The Party Committee of the Ho Chi Minh City People's Committee assessed that completing 200 km of urban railway in the next 12 years is a very big goal, and if we continue to do the same as in the past 20 years, it cannot be achieved. Therefore, the Party Committee of the Ho Chi Minh City People's Committee asked for the opinion of the Standing Committee of the City Party Committee and the Standing Committee of the Ho Chi Minh City Party Committee to propose a project to develop an urban railway system to specify the goal according to Conclusion 49 of 2023 of the Politburo.



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