HCM City is going ahead with efforts to attract foreign German, Japanese, and Russian investment on the proposed urban railway system to ease traffic congestion. The city has also targeted to increase the current 3.5% of commuters using public transport and taxis to 10-12% by 2010 and 15-18% by 2020.
Siemens Group has designs for two subways linking Ben Thanh Market in the city’s downtown with the districts Binh Chanh and 12 at an estimated investment capital of US$937 million.
The government, which approved the pre-feasibility study in 2004, will receive the project submission once the geological surveys are completed.
The city government, Asian Development Bank, Deutsche Bank, along with commercial banks and the Austrian government are to be sources for investment capital, said Siemens.
Meanwhile, Japan is keen on a US$625.8 million project to build another subway linking Ben Thanh Market with outlying Thu Duc district.
The Japan Railway Technical Service (JARTS) has conducted studies for the project and would source investment capital from the HCM City budget and the Japan Bank for International Cooperation (Jbic).
The JARTS project will likely get off the ground sooner than Siemens project, said Vietnam minister of Transport and Communications.
The city government has also signed a memorandum of understanding with the Moscow Metro Corp to build the city’s fourth subway linking districts 4 and Go Vap.
A city budget injection of US$173.32 million and bank loans worth US$279.16 million would account for project capital, according to the Russian plan.
Separately, the HCM City government also has plans to build 35km of elevated railway and monorail system within the city.