New ADB Loan to Cover Additional Costs in Building Hanoi Metro Line 3

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The FINANCIAL — The Asian Development Bank (ADB) has approved a $65 million loan to cover additional construction costs for Ha Noi’s metro line 3, and for improving services for passengers.

“Ha Noi’s metro line 3 is one of four priority rail lines under the government’s master plan to boost public transport, ease traffic congestion and reduce pollution in the capital,” said Arto Ahonen, Senior Transport Specialist in ADB’s Southeast Asia Department. “The assistance will help establish an integrated, sustainable public transport system in the city.”

The master plan approved by the government in 2008 aims to extend public transport to six districts of the city and to increase public transport’s share of overall passenger demand to 40%, according to ADB.

The funds will help develop a 12.5 kilometers (km) dual-track line between the suburb of Nhon and the capital’s main railway station, including a 3.5 km underground section which will become the first railway tunnel ever constructed in Ha Noi. Other infrastructure being financed includes a depot at Nhon, a transition tunnel portal, gender-sensitive sanitation facilities, and new electrical and mechanical systems.

Capacity building assistance will also be given to the Ha Noi Metropolitan Railway Management  Board and its staff to help hasten completion of the project, which has experienced substantial delays.

Along with ADB’s loan the Government of Viet Nam is providing counterpart support equivalent to $24 million, with cofinance of $296 million from four partners–including $50 million from the Clean Technology Fund, administered by ADB. The project will run for 5 years, with a target completion date of December 2019.

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ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.

 

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