Green bus route 1 will run 26 kilometers through Districts 1, 2, 5, 6, 7, Binh Tan, and Binh Chanh in a dedicated lane at an average speed of 60 kilometers per hour.
It will have a fleet of 42 buses with a capacity of 60-72 passengers, 28 stations and eight parking lots for personal vehicles.
The city will build footbridges at several places for people to access the stations. The buses will have a smart ticket system using electronic cards and smartphones.
Of its $142 million cost, 87 percent will be borrowed from the World Bank.
It is one of six routes planned to reduce routine congestion in a city that lacks efficient public transport to serve its 13 million residents.