European Investment Bank approves Vietnam metro loan

The European Investment Bank (EIB) has approved a EUR 150M (USD 198.4M) loan for the development of Line 2 of the Ho Chi Minh City metro, Vietnam. The deal was struck in Hanoi on 6 December 2010.

The line runs for 11.3km through 11 stations in the city centre of which 9.6km will be underground.

The loan was made as a result of the most recent Asia and Latin America (ALA) mandate. The current fourth mandate (ALA IV) relates to the years 2007 to 2013. Under this mandate the EIB can lend up to EUR 1bn (USD 1.3bn) to Asia for the purposes of mitigating climate change or supporting the EU presence in these regions.

Magdalena Alvarez, vice-president of the EIB Vice-President said, “The Bank is pleased to support this project as it will improve the quality of life of citizens by reducing congestion and daily commuting time as well as contributing to climate change mitigation by reducing traffic related emissions to the environment.”

The Asian Development Bank, the EIB and KFW Bankengruppe are financing the metro project.