Germany to Finance EUR85 Mln to Help Build Vietnam's Metro Route
German Parliament (Bundestag)’s Budget Committee on November 21 approved a soft loan worth EUR85 million ( US$126.378 million) to help build an underground metro route in Ho Chi Minh City, Vietnam News Agency reported.
This is an important investment plan of Siemens in Vietnam, who will be the project developer, help develop infrastructure development in the city, it noted.
The fund will be of great importance to Vietnam’s infrastructure development, members of parliament from German parties of Christian Democratic Union (CDU) and the Greens and the Free Democratic Party hailed.
Previously, German-based Dywidag International Co submitted its proposal to build two US$1 billion subway routes, local Young People newspaper said.
The Vietnamese city needs about VND 50 trillion (US$3.1 billion) to develop its key transport projects from now till 2010, of which it will require VND32.6 trillion (US$2.037 billion) to two metro routes to cope with growing traffic congestions now, which cost it more than VND13 trillion (US$812.5 million) annually.
The city has now around six million traffic users daily, of which only 4.5 per cent use public transport.
Germany lends Vietnam EUR39 million in economic development assistances, environmental protection, human resource development and health care projects, said Enditem Erich Stather, State Secretary of the German Federal Ministry for Economic Cooperation and Development.
The government of Vietnam is calling for foreign investments for 163 infrastructure projects, including US$53 billion for 109 industrial, construction projects.
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