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US$12.7 billion for urban railways in Hanoi and Saigon 22nd July 2008                

     
             
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The Ministry of Planning and Investment has said that the estimated investment for building inner railway systems in Hanoi and HCM City from now to 2020 is $12.7 billion, foreign capital accounting for 77%.

Of the sum, around $7.3 billion (80% ODA) is needed for the railway system in Hanoi: three major and two branch routes totalling 128km.

According to the Ministry of Transport, research on the five inner railway routes in Hanoi is underway, namely the monorail Ngoc Hoi-Yen Vien route ($1.7 billion), Tu Liem-Nam Thang Long routes ($1.9 billion), Nhon-Hanoi Railway Station ($767 million), Hanoi-Ha Dong ($470 million) and Daewoo-Lang-Hoa Lac ($600 million). The construction of the Nhon-Hanoi Railway Station route began in 2006.

In HCM City, the inner railway system will comprise two kinds: six routes of underground metro totalling 92km and tramcar or monorail. The total capital needed for this system is around $5.5 billion, 80% of which will be ODA capital.

Four routes are planned: Ben Thanh-Suoi Tien ($1.09 billion), metro route 2 ($1.3 billion), metro 3a route ($880 million) and metro 4 route (over $1 billion).

The Ministry of Planning and Investment said urban transport projects often require huge investment and a long time for construction so they are not attractive to investors. Most of the projects being researched will use ODA. The total ODA committed to these projects is over $4.8 billion – 48.3% of the required sum ($9.8 billion).

     
           
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