MoT proposes specific mechanisms for metro development in HN, HCMC
VGP - The Ministry of Transport has submitted a proposal worth VND3 quadrillion piloting specific and special mechanisms and policies to develop the urban railway network systems in Ha Noi and Ho Chi Minh City.
Ho Chi Minh City's Metro Line No. 1 officially starts operations in late 2024, connecting Ben Thanh Market in District 1 to Suoi Tien Theme Park in Thu Duc City
The draft proposal was sent to the Government suggesting the building of a National Assembly's resolution on those mechanisms.
If approved, the urban railway network in two big cities will be invested in a modern and sustainable way.
Minister of Transport Tran Hong Minh said more than 200 cities in the world had built urban railway systems. Large cities prioritize the development of urban railways to meet the demands of passenger transport because this is a fundamental solution to solve congestion, environmental pollution and urban traffic accidents, according to the minister.
He said that it is the right time to accelerate the synchronous and simultaneous investment and operation of the urban railway system.
The population of Ha Noi and HCM City reached 8.5 million and 9.5 million, respectively, in 2023. Meanwhile, income per capita of Ha Noi and HCMC were reported at US$5,900 and US$6,700 , respectively.
The two cities have identified the goal of developing an urban railway system to meet public transport demands, contributing to the restructuring of urban transport modes in a sustainable, harmonious and reasonable manner.
By 2035, both cities target to basically finalize the urban railway networks following Conclusion No. 49-KL/TW of the Politburo and approved plans.
The two metropolis strive to put into operation 17 urban railway routes and sections with a total length of about 752km by 2035, taking on 35-50 percent of the public passenger transport market share.
By 2045, seven more routes and four sections with a total length of about 355km are expected to be put into operation, making up 50-60 percent of the public passenger transport market share.
Six groups of specific mechanisms
Funding for those projects is estimated at over VND3 quadrillion including more than VND424.8 trillion from the State budget and the remaining from the cities' budget.
The transport ministry proposed six groups of specific mechanisms and policies including those on capital mobilization, investment procedures, Transit Oriented Development model, railway industry development, technology transfer and training.
Many flexible mechanisms have been proposed to help the two cities proactively mobilize capital from additional revenue sources, save costs, and ODA capital without having to prepare project proposals./.
