ADB loan helps develop HCM City transport
(VOV) - The Asian Development Bank (ADB) will provide US$500 million in loan to implement tranche 2 of the Ho Chi Minh City Urban Mass Rapid Transit Line 2 (MRT2) Investment Programme.
A document to this effect was signed in HCM City on July 4 by ADB Country Director for Vietnam Tomoyuki Kimura and State Bank of Vietnam Governor Nguyen Van Binh.
The sum will be used to build the main line of 11.3km MTR2 stretching from Ben Thanh in the downtown centre to Tham Luong, passing Tan Son Nhat International Airport.
Kimura said that the MRT2 project will not only reduce traffic congestion and accidents significantly but also promote low carbon mass rapid transport usage and substantially improve air quality and livability of the rapidly growing city.
Private vehicles dominate the country’s transportation while road infrastructure is reaching the saturation point. In HCMC, with explosive growth in the number of private vehicles, congestion and traffic accidents remain major concerns.
Increasing numbers of vehicles also lead to air quality degradation that will intensify with increasing congestion.
The Municipal People’s Committee is aware of these challenges and has adopted a proactive approach to make substantial investment for the public transport system to cater for a much larger share of passenger traffic, from about 5% today to over 40% in 2030, and substantially resolve the long-standing transport concern.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled US$21.6 billion, including cofinancing of US$8.3 billion.