Real estate giants offer to fund feasibility studies for three metro lines in Hanoi

By Nguyen Ha   February 3, 2018 | 08:59 pm PT
Real estate giants offer to fund feasibility studies for three metro lines in Hanoi
The first metro line of Hanoi is still taking shape after it was initially set to be finished last year. Photo by VnExpress/Ba Do
The two firms say they will not charge the city if their studies are rejected.

Leading Vietnamese property conglomerates Vingroup and T&T will undertake feasibility studies for three metro lines planned for Hanoi if a proposal submitted by the city receives approval.

The government has asked related ministries and Vietnam Railways, the state-owned operator of the railway system in Vietnam, to look into the proposal for Vingroup and T&T to fund their own pre-feasibility and feasibility studies with no strings attached, meaning if their findings are rejected they will not demand payment.

The three metro lines were put forward for private investment in 2016 so they can be completed by 2025, but so far only Vingroup and T&T have expressed an interest.

Vingroup wants to study two routes stretching 38.4 kilometers (23 miles) and 5.9km, while T&T wants to look into a line that will run 54km.

If their studies are approved, the two companies said they are willing to transfer them to the city and the chosen investors without charge.

If Vingroup and T&T are selected as the main investors, they will add the costs of their studies to the total costs of the projects.

Hanoi will require all potential investors to submit detailed plans for the legislative National Assembly to consider at a meeting this year.

The metro lines have been listed as major national projects and only the NA and the Prime Minister can decide on the investors.

Hanoi has plans to build eight metro lines by 2030, and work has already started on the first two.

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