HO CHI MINH CITY METRO LINE PROJECT 2

The project consists of the first phase of Metro Line 2 in Ho Chi Minh City, Vietnam’s largest and most important city together with Hanoi. The new line will be approximately 11.7 km long (including connection to depot), with 11 stations and a depot/workshop. The project foresees also the acquisition of new rolling stock to operate the line. The project is part of the approved Transport Master Plan, which includes other new metro lines, and aims to achieve a significant increase in public transport modal share, from the current 5% to more than 40%. This will help in mitigating transport-related pollution in this increasingly congested city. The projected is to be implemented over the period 2011-2018.

The proposed operation would support a project that would contribute to the EU presence in Vietnam through transfer of technology and know-how and to environmental sustainability, the two objectives of the Asia Latin America Mandate and EU priorities.

By virtue of its technical characteristic, the project, if located in the EU, would fall under Annex II of the EU EIA Directive 85/337/EEC as amended, leaving it up to the competent authorities to decide whether an EIA is required or not. Under Vietnamese Law, a full EIA, including public consultation, is required and has been conducted by the promoter, assisted by international consultants under the supervision of the Asian Development Bank. Its content and main findings will be reviewed in depth at appraisal stage. The project and the more global plan of which it is part should greatly reinforce the public transport system in HCMC, thus pushing for a positive modal shift from private cars, reducing congestion and environmental problems associated to it, including the reduction of greenhouse gases emissions, and therefore contributing to Climate Change mitigation.

The project would have to comply with the basic principles of the EU policy on procurement. These aspects will be checked during appraisal. Nevertheless, it is already clear that the main project components will be internationally tendered according to principles indicated by the different IFIs involved in the project, consistently with the principles of EIB’s Guide to Procurement, the application of which is a precondition for the Bank’s financing. Tender documentation and all the procurement process for components financed by the EIB will be subject to its approval and the release of no-objection before proceeding.