The city is seeking parliamentary approval to implement the first phase of the project with possible loans from Europe.
Ho Chi Minh City is seeking the National Assembly’s approval to implement the first phase of Metro Line No.5 with total investment capital of VND41 trillion ($1.84 billion).
The municipal administration recently submitted a proposal to the government for Phase 1 of the urban rail project, according to the city's Management Authority for Urban Railways.
|Ho Chi Minh City is accelerating the development of its urban railway network, including its first metro line in this picture. (Photo:VnExpress)
As one out of three urban railways that have been given top priority for 2016-2021, Metro Line No.5 would run for nine kilometers and connect Metro Line No.2 at Tan Binh District's Bay Hien Interchange with Metro Line No.1 at the Saigon Bridge Station.
The European Investment Bank alongside the German Reconstruction Bank have offered a combined $381 million loan, while the Spanish government has pledged $299.38 million, which would cover nearly 40 percent of the total investment.
The remainder will be provided by the Asian Development Bank ($517.11 million) and Vietnam’s state budget ($504 million).
The Metro Line No.5 is scheduled to open by 2025, and will be able to withstand level-7 magnitude earthquakes.
Most of the line will be underground but 1.43 km will be along elevated rail with six trains traveling at maximum speeds of 90km per hour.
According to the proposal, this project will require more than 30 hectares (74 acres) of land, including residential areas covering 46,000 square meters and affecting 1,381 households. Site clearance will be completed in 2018 or 2019.VnExpress