Viet Nam: Ha Noi Metro Rail System Project (Line 3: Nhon-Ha Noi Station Section)

Transport / Urban public transport

The Government of Viet Nam is well aware of the impact of inadequate transport infrastructure on economic growth. Failure to invest in major public transport to support a major modal shift away from private transport in major cities will constrain economic growth and accelerate degradation of the urban environment. The government supports transport sector investment to promote economic growth and protect the enviornment through a low carbon growth path that reduces greenhouse gas emissions. The country partnership strategy 2012-2015 of the Asian Development Bank (ADB) supports the government's investment program to improve urban transport infrastructure and reduce transportation costs.

Ha Noi is Viet Nam's capital and the second-largest city in Viet Nam; the population of the greater urban area is about 7.5 million (2015), and is expected to grow to more than 8 million by 2025. Private vehicles dominate transportation, with about 90% of transport modal share. Inadequate road infrastructure results in heavy congestion during peak hours, and this will worsen when motorbike riders switch to cars as their household incomes improve. While the road network is expanding slowly, the growth cannot meet the expected increase in demand, and most inner city areas face space limitations on road capacity expansion. Private transport is not sustainable as the principal transportation mode. A well-integrated high capacity pubilc urban transport system is essential to meet the demands of Ha Noi, and a metro rail system is the most appropriate solution for densely populated inner city areas. Without investment in major public transport infrastructure to support a significant modal shift to public transport, economic growth will be severely constrained and the urban enviorment will deteriorate due to high logistics costs and severe congestion. Ha Noi is at an early stage of adoption of private motorization, so investment in major public transport infrastructure represents an effective means to reduce future urban congestion.

Metro line 3 is operational

Improved implementation capacity of MRB

1. All the five civil works contracts (CP01, 02, 03, 04, and 05) were awarded by October 2015 (CP04 - Depot infrastructure was the first awarded CW contract in September 2010, and CP03 - Tunnel and Underground Stations was the last awarded CW contract in October 2015). Due to implementation delays, completion of all the civil works contracts is expected by June 2027, i.e., completion of CP03 - Tunnel and Underground Stations. As of May 2022, the actual project overall physical progress is 69.0% against the planned progress of 99.6%, in which the actual progress of the elevated section and the underground section are 95.7% and 26.6%, respectively, against the implementation plan of each section. Opening of the elevated section is expected by the end of 2022, while opening of the underground section is expected by June 2027. Regarding the elevated section, CP01 - Viaduct, CP04 - Depot Infrastructures were completed and CP02 - Elevated Stations has been almost completed (99.4%). However, implementation progress of CP05 - Depot Architecture Works is being delayed (76.3%) that represents great concern for the opening of the elevated section by the end of 2022. For the underground section, due to various reasons including delayed sites handing over, the CP03 contractor suspended their works since August 2021 and issued a notice of contract termination on 31 October 2021. Negotiation on the resumption of works is ongoing. The actual physical progress of the contract package stands at 32.3% against the plan of 100.0%. All the four system contracts (CP06, 07, 08, and 09) were awarded by December 2019 (CP07 - Electro-Mechanical Systems was the first awarded system contract in March 2016, and CP09 - Automatic Fare Collection was the last awarded system contract in December 2019). Implementation of these system contracts are ongoing, noting that the CP07 contractor suspended their works since April 2021. The system commissioning is expected by the end of 2022 for the elevated section, and by June 2027 for the underground section. Land acquisition was completed for the depot, access line area, and elevated section. For underground stations, land acquisition has not yet been completed due to issues including (i) some pending public utilities at stations, (ii) some houses' balconies encroaching the site boundary, and (iii) two households declining the proposed compensation and assistance package. For underground tunnel, in October 2021, the Hanoi People's Committee (HPC) approved a policy for compensation and assistance for affected households by construction of the tunnel. A resettlement plan (RP) for the tunneling section was prepared and submitted to ADB on 23 May 2022, which is under revision following ADB's comments. ADB's no objection to the RP is expected in July 2022.

2. All the consultants supporting MRB were mobilized. Extension of the consulting services supports until the project completion is being discussed.

Under ADB financing: Contract Package CP3 - underground stations and tunnels: Civil works for about 4km length of underground twin tunnel urban rail line, including 4 underground stations.

Status: Procurement for construction of the underground section has been completed and the CP03 contract awarded in October 2015.