fbpx 39500-033: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2 | Asian Development Bank

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

Sovereign (Public) Project | 39500-033 Status: Active
Project Name Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2
Project Number 39500-033
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2956-VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2
Ordinary capital resources US$ 500.00 million
Loan: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2
KfW Bankengruppe US$ 276.60 million
European Investment Bank US$ 195.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Transport / Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming

The purpose of the project is to support the local economic development in HCMC by initiating the first stage of a mass transit transport system, that will improve urban livability due to constant urban degradation and traffic congestion, reduce traffic accidents, and improve the city's air quality.

Viet Nam's economy is growing rapidly. This is especially the case in large cities, most notably Hanoi and Ho Chi Minh City (HCMC), which are the primary centers of economic growth and will remain so for the foreseeable future. The large cities have grown rapidly over the last 15 years and are expected to continue to grow relative to the rest of the country, both in terms of population and economy. HCMC is the largest city in Viet Nam with an area of about 2,100 sq. km. and a population that has grown at an average of 2.4% over the last 15 years, to about 5.5 million in 2003, or approximately 6% of Viet Nam's total population. On current trends, the city's population is forecast to reach 7.2 million by 2020.

Project Rationale and Linkage to Country/Regional Strategy

Although cars are becoming more common, motorcycles dominate transport in HCMC, and serve the population well, providing the poor with mobility than experienced by many non-motorized citizens in richer countries. Inspite of explosive growth in motorcycle ownership, congestion has remained tolerable. Traffic accidents, however, have become a serious concern. Increasing vehicle numbers have also lead to air quality degradation that will intensify with increasing congestion.

The People's Committee in HCMC is aware of these challenges and has developed plans for the orderly development of the city based on designated satellite growth areas and rapid development of public transport to cater for a much lager share of passenger traffic, from about 5% today to 45% in 2020.

The CSP for Viet Nam includes sustainable growth as one of the strategic priorities. If the economy is to continue growing then the major engines of this growth must not be starved of adequate transport infrastructure.

Impact Competitive MRT2 services along the project corridor
Project Outcome
Description of Outcome MRT2 operations and maintenance system effectively implemented
Progress Toward Outcome

Civil Works

CP2 (Infrastructure Construction of Tham Luong Depot): this contract will be transferred from Tranche 1 to Tranche 2 after a change in the scope. The procurement to start in Q3 2019 after approval of project adjustment document (PAD). The contract expected to be awarded in Q3 2020.

CP3a and CP3b (Tunnels and Underground Stations): the procurement is on-going. MAUR issued bidding documents in Dec 2017, with expected bids closure by end November 2018. The contracts are expected to be awarded in 2019.

CP4 (Viaduct and Elevated Station): Upon an approval of PAD, MAUR intends to issue bidding document in Q4 2018 and award a contract in 2019.

Implementation Progress
Description of Project Outputs Construction of MRT2 main line and depot
Status of Implementation Progress (Outputs, Activities, and Issues) Due to changes in design and delayed approval of PAD by higher authority, civil works packages (CP3a and CP3b - Tunnels and Underground Stations, CP4 - Transition, Elevated Station, Viaduct and Spur Line) are expected to be awarded in late 2019.
Geographical Location Ho Chi Minh City, Quan Ba, Quan Mot, Quan Muoi, Quan Muoi Hai, Quan Tan Binh, Tan Phu
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Existing Environmental Conditions: (i) Air Quality: current dust levels exceed GOV limits, (ii) Noise and Vibration: ambient noise exceeds GOV limits, (iii) Surface Water: Tham Luong Canal is contaminated, and (iv) Groundwater & Soil: nearly all parameters within GOV limits.

Impacts from Construction: (i) Air Quality - Construction Equipment creating dust and emissions through building removal and excavation; Mitigation thru Dust control plan, enclosing site, watering/sweeping, emission control system, dust covers, (ii) Noise and Vibration - Increase during construction; Mitigation thru Noise control plan, enclosing site, muffled equipment, day only construction, (iii) Geology and Soils - 1.9 million m3 of soil to be removed; Mitigation thru Spoils disposal plan, 1.45 million m3 recycled and sold, 0.45 million m3 to approved spoils disposal site, (iv) Hydrogeology Groundwater contamination, blocking groundwater flows, loss of wells; Mitigation thru avoidance of excessive pressure, testing for quality monitoring, non-toxic soil additives, local wells at spoils disposal site > 200m deep, (v) Subsidence and settlement Expected 10mm at centerline and 16mm edge of tunnel; Mitigation thru monitoring program for buildings and roads, retaining wall for deep excavation, (vi) Water and Vegetation Resources Pollution of Tham Luong canal, loss of trees, spoils site vegetation loss; Mitigation thru Piers either side of canal, trees replaced, (vii) Traffic and Accessibility - blockage of traffic lanes at stations, equipment and materials impede traffic flows; Mitigation thru Traffic plan, public information program, materials stored on site or used immediately, (viii) Health and Safety - workers and public risks; Mitigation thru Occupational and Community Health and Safety Plan, Emergency Response Plan, public information program.

Operational Impacts: (i) Viaduct Noise and vibration: Mitigation thru noise shield along viaduct, noise barrier at Tan Binh station, continuously welded track, (ii) Underground tunnel noise telegraphing , site clearance for station building; Mitigation thru Noise attenuation at tunnel portal, (iii) Depot train movements, maintenance noise; Mitigation thru Slow travel (5-20 km/h), maintenance inside workshops

Cumulative Impacts: the project is (i) contributing to environmental sustainability initiatives by reducing vehicle trips and need to expand road network, (ii) preserving community livability and green space, (iii) encouraging pedestrian and bicycle traffic along the corridor, and (iv) reducing greenhouse gas emissions Induced impacts: It is expected that there will be land use changes around the stations and the Depot, re- development around the interchange stations and positive community and economic benefits to HCMC.

Involuntary Resettlement


Affected land: A total estimated 43 Ha of land will be acquired for the activities of tranche 2 project. It comprises of 20 Ha of residential land and 23 Ha of public, commercial and agricultural lands for the constructions of underground and elevated stations as well as the depot in 6 Districts (District 1, 3, 10,12, Tanh Bhin and Tan Phu).

Affected persons: A total of 519 households and organizations/business entities will be affected by land acquisition. Of these, 106 households and 10 organizations will be physically displaced. 452 business and 79 public organization will also be affected from permanent land acquisitions. Five updated RPs have been prepared for mitigating the identified involuntary resettlement impacts of the project. Grievance redress mechanism prepared in accordance to the current national regulation. The formal URPs are yet to be submitted by HCMC People Committee for disclosure on ADB website.

Indigenous Peoples No indigenous people's identified within the project area
Stakeholder Communication, Participation, and Consultation
During Project Design

Environmental: (a) MRT Alignment: Identified traffic, air and noise quality concerns during construction and overwhelming support for the project at all sessions. (b) Spoils Disposal Site: It is expected that there will be no significant adverse impacts with proper spoils disposal.


Mainline resettlement Surveys were conducted from June to July 2011, including (i) Inventory of Losses, (ii) Census, (iii) Socio-Economic Survey, and (iv) Replacement Cost Study. Consultations with affected households conducted in August 2011. Key information related to project and contents of resettlement plan mitigation measures was disclosed to affected households December 2011. Depot area assessment was conducted September 2011 to February 2012 consisting of (i) site visits, (ii) review and analysis of recorded losses (land and non-land assets) and individual compensation plans, (iii) interview of District 12 Compensation Board, (iv) interview of 22 affected households (27% sample), (v) conduct of socio-economic survey of 22 households, and (vi) review to assess if compensation paid for lost assets was at replacement cost.

During Project Implementation HCMC PC, MAUR, relevant departments of HCMC PC, government, and donors have been frequently discussing the project implementation schedule, investment costs, financing arrangements, and so on, to expedite the project implementation progress and ensure the compliance with all requirements.
Business Opportunities
Consulting Services Nil

CP3a and CP3b: Tunnels and underground stations

CP4: Transition, elevated station, viaduct and spur line

Responsible ADB Officer Daisuke Mizusawa
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ho Chi Minh City People's Committee
[email protected]
86 Le Thanh Ton Street, Ben Nghe Ward,
District 1, Ho Chi Minh City
Viet Nam
Concept Clearance 01 Oct 2009
Fact Finding 10 May 2012 to 17 May 2012
MRM 15 Aug 2012
Approval 27 Nov 2012
Last Review Mission -
PDS Creation Date 17 Jul 2007
Last PDS Update 20 Sep 2018

Loan 2956-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2012 04 Jul 2013 02 Jan 2014 30 Jun 2018 13 Dec 2020 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,270.20 Cumulative Contract Awards
ADB 500.00 27 Nov 2012 0.00 0.00 0%
Counterpart 298.60 Cumulative Disbursements
Cofinancing 471.60 27 Nov 2012 4.43 0.00 1%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


Tender Title Type Status Posting Date Deadline
2956-VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program [CP3a] Invitation for Bids Closed 26 Dec 2017 30 Nov 2018
2956-VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program [CP3b] Invitation for Bids Closed 26 Dec 2017 30 Nov 2018

Contracts Awarded

No contracts awarded for this project were found