The French Government will provide Vietnam with a soft loan of 200 million euros for the construction of the first urban railway line in Hanoi capital city.
An agreement to this effect was signed in Paris on October 4 by French Minister for Foreign Trade Christine Lagarde and Vietnamese Vice Minister of Planning and Investment Cao Viet Sinh, who is also Co-chairman of the Supreme Council for France-Vietnam Economic Cooperation Development.
The project is estimated to cost 458 million euros, with 200 million euros on soft loan from the French Government and 80.5 million euros on loan from the French Development Agency (AFD). Construction will begin in 2007 and be completed in 2010 when Hanoi commemorates its millenniumth founding anniversary.
The 12.5 km line will connect the Hanoi central railway station to Nhon in the outlying district of Tu Liem. It will be able to serve 6,000 travelers per hour in the first phase, 9,000 in 2020 and 12,000 in 2030.
Minister Lagarde told the Vietnam News Agency reporter that the soft loan demonstrated France's special care for Vietnam, affirming the two countries' strong partnership not only in politics and culture, but also in economics.
The minister stressed that France has become a bridge for Vietnamese products to enter the European market, and in return, Vietnam has been a gateway to French businesses to promote investment activities in Southeast Asia.
