Hanoi plans to spend $40bn to build 10 metro lines

Hanoi authorities have asked the government to employ public-private-partnership model and allocate ODA to build 10 metro lines worth USD40bn to deal with congestion.



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The proposal was included in the report about investment and solutions for metro lines given to the prime minister. 

On June 27, the Government Office started gathering opinions from agencies such as the Ministry of Finance, the Ministry of Construction, the Ministry of Transport and the State Bank of Vietnam.

According to Hanoi Transport Planning to 2030 with a vision to 2050, Hanoi will build 417.8km of 10 routes for over USD40bn. 

About USD7.55bn will be needed for 2017-2020 period, USD7.6bn for 2021-2025 period and USD3.56bn for 2026-2030 and USD21.32bn after 2031.

Hanoi authorities have asked to allocate ODA gradually for all projects or give priorities to build metro lines 2 and 3 which are receiving interests from the ADB Bank and the Japanese government.

For public-private-partnership projects, private firms will pay to get feasibility report done, hire consultants, clear the ground, dig tunnels and complete other construction work. 

Hanoi will pay for the trains, equipment, control systems and the management.

As of now, five domestic and two foreign investors have registered for the metro line projects including the Vingroup, Xuan Thanh Group, Russia’s OJSC Mosmetrostroy and South Korea’s Lotte Co., Ltd. 

To speed up the projects, the government and prime minister should be given authority to pass the projects quickly without going through the National Assembly, according to Hanoi authorities. 

At first, investors will be asked to complete their pre-feasibility report by September to submit to prime ministerial approval and the National Assembly at the year-end meeting session.

It estimated that Hanoi could call for VND337trn (USD14.8bn) in reciprocal funding and asked to add 6,000 hectares of land to the fund. 

They can collect VND15trn from auctioning or renting out state houses and redundant headquarters.

dtinews

Hanoi plans to spend $40bn to build 10 metro lines, social news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, Vietnam net news, Vietnam latest news, vn news, Vietnam breaking news
 
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