Vietnam: EIB supports its first metro line project in Asia
- Release date: 04 October 2010
- Reference: 2010-061-EN
The European Investment Bank (EIB) has granted a EUR 73 million loan to the Socialist Republic of Vietnam to finance the construction of a metro line project in Hanoi. The finance contract was signed in Brussels today.
Mr Francisco de Paula Coelho, EIB Director for Lending Operations in Asia, said that: “Urban infrastructure and the improved quality of life of citizens is a key priority for the European Union and for the EIB. The metro line will improve mobility, reduce daily commuting times and encourage residents to use public transport with positive consequences for their quality of life, as well as for the city’s environment”. He also stressed “the importance to the project of the cooperation between the three financial institutions: the Asian Development Bank (ADB), the Agence Française de Développement (AFD) and the EIB”.
The EUR 73 million operation is designed to finance the construction of metro Line 3 in Hanoi, the capital and the second-largest city in Vietnam. The new metro line extends over 12.5 km and has 12 stations in the central area of the city. The project also includes the construction and equipping of a new depot well as the acquisition of new rolling stock to operate the line. The new metro line will be used by 200 000 passengers per day.
The EIB is supporting the public transport system of Hanoi to facilitate a reduction in transport-related pollutant emissions and fuel consumption with the aim of providing a more reliable, fast and environmentally friendly rail-based service along corridors currently served only by road-based modes. The project will make a significant contribution to improving the quality of life in Hanoi by increasing mobility for many people, alleviating traffic congestion and providing a cleaner and quicker alternative to mopeds and private cars.
The EIB is extending this loan under the current lending mandate for Asia and Latin America (ALA IV). The project meets the mandate’s priority objectives of supporting the EU’s presence in the region and contributes to climate change mitigation. This is the first EIB-financed metro line in Asia.
Background:
The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1958, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU are part of the EU’s cooperation policy with third countries.
Since 1993 the Bank has carried out four successive lending mandates for Asia and Latin America. Under the current mandate (ALA IV), covering the period 2007-2013, the EIB is authorised to lend up to EUR 3.8 billion for financing operations that contribute to climate change mitigation or support the EU presence in those regions through foreign direct investment or the transfer of technology and know-how. The EUR 3.8 billion regional ceiling is broken down into indicative sub-ceilings of EUR 1 billion for Asia and EUR 2.8 billion for Latin America.
Mr Francisco de Paula Coelho, EIB Director for Lending Operations in Asia, said that: “Urban infrastructure and the improved quality of life of citizens is a key priority for the European Union and for the EIB. The metro line will improve mobility, reduce daily commuting times and encourage residents to use public transport with positive consequences for their quality of life, as well as for the city’s environment”. He also stressed “the importance to the project of the cooperation between the three financial institutions: the Asian Development Bank (ADB), the Agence Française de Développement (AFD) and the EIB”.
The EUR 73 million operation is designed to finance the construction of metro Line 3 in Hanoi, the capital and the second-largest city in Vietnam. The new metro line extends over 12.5 km and has 12 stations in the central area of the city. The project also includes the construction and equipping of a new depot well as the acquisition of new rolling stock to operate the line. The new metro line will be used by 200 000 passengers per day.
The EIB is supporting the public transport system of Hanoi to facilitate a reduction in transport-related pollutant emissions and fuel consumption with the aim of providing a more reliable, fast and environmentally friendly rail-based service along corridors currently served only by road-based modes. The project will make a significant contribution to improving the quality of life in Hanoi by increasing mobility for many people, alleviating traffic congestion and providing a cleaner and quicker alternative to mopeds and private cars.
The EIB is extending this loan under the current lending mandate for Asia and Latin America (ALA IV). The project meets the mandate’s priority objectives of supporting the EU’s presence in the region and contributes to climate change mitigation. This is the first EIB-financed metro line in Asia.
Background:
The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1958, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU are part of the EU’s cooperation policy with third countries.
Since 1993 the Bank has carried out four successive lending mandates for Asia and Latin America. Under the current mandate (ALA IV), covering the period 2007-2013, the EIB is authorised to lend up to EUR 3.8 billion for financing operations that contribute to climate change mitigation or support the EU presence in those regions through foreign direct investment or the transfer of technology and know-how. The EUR 3.8 billion regional ceiling is broken down into indicative sub-ceilings of EUR 1 billion for Asia and EUR 2.8 billion for Latin America.
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