Foreign funding sought for Da Nang-Hoi An metro line in central Vietnam

By Nguyen Dong   November 23, 2018 | 06:14 pm GMT+7
Foreign funding sought for Da Nang-Hoi An metro line in central Vietnam
Hoi An Town in central Vietnam. Photo by VnExpress/Huong Chi

Da Nang City is seeking foreign investment for a metro line from the Da Nang International Airport to ancient Hoi An Town.

The line will run 33 kilometers (20.5 miles) along the coast and reduce road congestion, authorities say.

The lack of public transport between the two destinations and a significant rise in the number of private vehicles in both Da Nang and Hoi An Town have prompted authorities to go for the metro, said Le Thi Kim Phuong, deputy director of Da Nang City’s department of planning and investment.

She also said at a Thursday meeting that the line will be built using official development assistance (ODA) loans or under the form of public-private-partnerships (PPP).

Da Nang estimates that the total investment cost could range from VND7.5 trillion ($330 million) to VND15 trillion, and construction would last from 2019 to 2025.

If ODA loans are used, Da Nang and Quang Nam Province, home to Hoi An Town, will have to borrow between VND6.7 trillion to VND13.4 trillion and raise the rest as counterpart funds.

Phuong told VnExpress that some foreign and domestic investors have expressed interest in the project and most of them prefer the PPP format.

Le Van Trung, director of the city’s transport department, said Da Nang and Quang Nam had agreed on a decision to build a metro line from Da Nang airport to Hoi An since last year but so far, Hoi An has yet to decide where to put the station.

A more specific amount of investment for the metro line will be announced after the two localities come up with a feasibility report for the project, he said.

The total number of tourists to Hoi An reached the highest ever at 3.22 million last year and in the first nine months of this year, it welcomed 4.55 million visitors, up 77 percent against a year ago, including 3.4 million foreigners.

In Da Nang, tourist arrivals rose 27.7 percent year-on-year to 6.5 million during the nine-month period.

 
 
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