Viet Nam: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program

Sovereign Project | 39500-013

Summary

The investment program will construct 11.7 kilometers of dual track mass rapid transit (MRT) line in Ho Chi Minh City from Ben Thanh to Tham Luong, including a depot at Tham Luong, to support the local economic development in HCMC by initiating the first stage of a MRT system.

The expected impact of the investment program will be the establishment of an integrated sustainable urban transport system in project districts. The outcome is to provide competitive public transport along the project corridor. The resultant slowing of growth in the number of private vehicles on city roads will improve the urban environment, reducing accidents and air and noise pollution and making the urban environment more pedestrian friendly. The investment program also supports HCMC's climate change mitigation efforts by adopting a low-carbon transport growth path and encouraging a substantive modal shift from private vehicles to public transport, which is more energy efficient and emits less greenhouse gas.

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Project Name Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program
Project Number 39500-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0052-VIE: Multitranche Financing Facility Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program
Ordinary capital resources US$ 540.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Transport - Urban public transport
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The investment program will construct 11.7 kilometers of dual track mass rapid transit (MRT) line in Ho Chi Minh City from Ben Thanh to Tham Luong, including a depot at Tham Luong, to support the local economic development in HCMC by initiating the first stage of a MRT system.

The expected impact of the investment program will be the establishment of an integrated sustainable urban transport system in project districts. The outcome is to provide competitive public transport along the project corridor. The resultant slowing of growth in the number of private vehicles on city roads will improve the urban environment, reducing accidents and air and noise pollution and making the urban environment more pedestrian friendly. The investment program also supports HCMC's climate change mitigation efforts by adopting a low-carbon transport growth path and encouraging a substantive modal shift from private vehicles to public transport, which is more energy efficient and emits less greenhouse gas.

Project Rationale and Linkage to Country/Regional Strategy

The Government of Viet Nam is well aware of the impact of inadequate transport infrastructure on economic growth. Without investment in public transport infrastructure in cities, economic growth will be constrained and the urban environment will degrade further.

Ho Chi Minh City (HCMC) is the largest city in Viet Nam, with a population of over 9 million that is expected to grow to 13.8 million by 2025. Private vehicles dominate transportation, but road infrastructure is reaching the saturation point, which will worsen as more motorbike users convert to cars with improving household incomes. Road network development faces space limitations and will not be able to meet the expected increase in demand, so private transport is not sustainable as the principal transportation mode. A well-integrated high-capacity public transport system is essential, and a rail mass rapid transit (MRT) system is most appropriate for densely populated cities. Without improvements in major public transport infrastructure, combined with policies that support a modal shift to public transport, HCMC's economic growth will be constrained by high logistics costs and severe congestion.

Impact An integrated, sustainable public transport system in six districts of Ho Chi Minh City
Project Outcome
Description of Outcome Competitive MRT services along the project corridor
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Project 1: MRT Line 2 System Development - Initial site works and office facilities at depot

Project 1: Implementation support program implemented

Project 1: Social development and gender mainstreaming program implemented

Project 1: Integrated sustainable urban transport study

Project 2: Construction of MRT2 main line and depot

Project 2: MRT2 E&M systems and rolling stock installed and operation of metro services

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Ho Chi Minh City
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design A social impact assessment was conducted in 2008 using structured interviews with potentially displaced people along the proposed main line and focus group discussions with women's groups and local leaders in the project area. In February, March, and June 2010, due diligence was carried out at the depot site, including interviews with district and ward officials from District 12, and consultation with displaced people who had already been compensated.
During Project Implementation
Business Opportunities
Consulting Services tbd
Procurement tbd
Responsible ADB Officer Yasushi Tanaka
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ho Chi Minh City People's CommitteeNo. 1 Cuong Truong, Quoc te, District 3
Ho Chi Minh City
Viet Nam
Timetable
Concept Clearance 01 Mar 2010
Fact Finding 07 Jun 2010 to 11 Jun 2010
MRM 20 Jul 2010
Approval 14 Dec 2010
Last Review Mission -
PDS Creation Date 16 Mar 2006
Last PDS Update 01 Sep 2011

MFF Facility Concept

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 326.50 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 326.50 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

MFF Facility Concept 0052-VIE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 866.50 Cumulative Contract Awards
ADB 540.00 - 0.00 0.00 %
Counterpart 326.50 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

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Evaluation Documents

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