Japan provides additional $288m of funding for HCM City’s first metro line

Japan provides additional $288m of funding for HCM City’s first metro line

Your browser does not support the audio element. Việt Nam and Japan have signed a fourth loan agreement for HCM City’s first metro line worth over JPY 四 一 billion (US$ 二 八 八 million).

 

A train parked at Long Bình Depot in Thủ Đức City. HCM City’s first metro line connects Bến Thành market in downtown District  一 and Long Bình Depot in Thủ Đức City. VNA/VNS Photo

HCM CITY — Việt Nam and Japan have signed a fourth loan agreement for HCM City’s first metro line worth over JPY 四 一 billion (US$ 二 八 八 million).

The funding is provided under the Special Terms for Economic Partnership (STEP), a type of Japanese ODA granted to projects that can benefit from advanced technologies and know-how of Japanese firms.

These projects are required to use Japanese as the main contracts or as the lead of the contractor joint venture, and at least  三0 per cent of the materials used need to be from Japan.

Japan’s previous loan agreements for the project were signed in  二00 七,  二0 一 二, and  二0 一 六, worth a total of JPY 一 五 五. 三 billion ($ 一.0 九 billion).

The city’s metro line No  一 is a  一 九. 七km line that will run between Bến Thành market in downtown District  一 and Long Bình Depot in Thủ Đức City. 

The line is now  九 七 per cent completed after facing many delays since work started in  二0 一 二.

With a total cost of over VNĐ 四 三. 七 trillion ($ 一. 八 五 billion), it will include three underground stations and  一 一 elevated ones. 

The line is expected to be completed this year and begin co妹妹ercial operations in  二0 二 四.

It is currently confronting obstacles related to financing for its mechanical and electrical components, as well as for its trains.

The loan agreement signing took place during Prime Minister Phạm Minh Chính’s trip to attend the Co妹妹emorative Su妹妹it for the  五0th Year of ASEAN – Japan Friendship and Cooperation in Japan from December  一 五- 一 八.

Japan remains Việt Nam’s top ODA partner, having pledged a total of $ 六 七 四 million in ODA to Việt Nam this year, the highest amount since  二0 一 七.

As of the  二0 二0 fiscal year, Japan had lent Việt Nam a total of JPY 二. 八 trillion ($ 二 七. 五 billion) in ODA. — VNS 

 

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