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Saigon looks for $2.1 billion to extend metro line

By VnExpress November 25, 2016 | 10:30 pm PT

South Korea is offering $500 million to finance the extra segment to Long An Province.

Ho Chi Minh City is searching for $2.1 billion to fund the second phase of its Metro Line No.5, which will help connect the city with the neighboring province Long An, local media reported on Friday.

This comes on top of the VND41 trillion ($1.84 billion) cost estimate for the proposed first phase of the line, linking the Saigon Bridge and Tan Binh District's Bay Hien Intersection. The first investment package is still pending approval from legislators.

The second phase of the line will run an extra 14.56 kilometers, from the intersection to Long An's Can Giuoc Bus Station.

The South Korean government is offering $500 million to finance the construction of the second phase, while the Korea Railroad Research Institute is conducting feasibility, design and operation studies for the project, Vietnamplus reported.

For the first phase, the European Investment Bank alongside the German Reconstruction Bank have offered a combined $381 million loan, while the Spanish government has pledged $299.38 million, which will cover nearly 40 percent of the cost.

The rest will be provided by the Asian Development Bank ($517.11 million) and Vietnam’s state budget ($504 million).

The first phase is scheduled for operation by 2025.

> Saigon's first metro line in the making: a closer look