VNBusinessNews – HCMC will add three subways to the list of projects to use Spanish loans this year, said a source of the HCMC Management Authority for Urban Railways.

In a statement issued by the Government Office last month, Prime Minister Nguyen Tan Dung approved a HCMC proposal to put the fourth subway project on the list of top-priority projects to be financed by Spanish and Asian Development Bank (ADB) loans this year.

The fourth subway, also known as Route 4, will connect Ben Cat Bridge in Go Vap District in the north with Nguyen Van Linh Boulevard in District 7 in the south.

The PM also allowed the city to hold negotiations with Spain over financing for two other subways, Saigon-Can Giuoc and Ba Queo-Phu Lam.

An official of the railway authority told the Daily on Thursday that the city wanted to raise funds from Spain’s official development assistance and ADB loans for the rail line linking Go Vap District and District 2.

This is also the outcome of a meeting between leading Spanish companies and the city’s vice chairman Nguyen Thanh Tai in HCMC last July. At the meeting, these companies showed strong interest in working with HCMC over metro development.

The Spanish companies said they developed many metro projects around the world so they would be able to find appropriate solutions to financing the projects in the city, the source said.

The fourth subway, with a length of around 14 km for the main line and 2.3 km for the feeder-line, will require around US$1.04 billion.

Meanwhile, Route 5 will have a total length of 15 km, starting form Can Giuoc Coach Station in District 8 and ending at the Saigon Bridge. The 6-km Route 6 will connect Ba Queo in Tan Binh District and Phu Lam in District 6.

HCMC will need around US$900 million for developing the Saigon-Can Giuoc and US$320 million for the latter. The city also plans to seek aid from Spain to carry out surveys of the two routes.

The city’s relevant agencies are making preparations and complete the formulation of detailed development plans for two other urban railroads, routes 2 and 3a. They will have a total length of 27 kilometers. Ben Thanh-Tham Luong line will require US$1.25 billion and Ben Thanh-Mien Tay Coach Station US$880 million.

Under the city’s development master plan to 2020, there will be seven subway lines – 1, 2, 3a, 3b, 4, 5 and 6, with a combined length of 107 km. US$5-6 billion will be needed for them.

The city’s fast population growth requires the city to develop mass rapid transport. A survey shows the population of HCMC would reach 20 to 22 million by 2020, compared to about seven million by the end of 2008. (SGT)