HCMC proposes special mechanisms, policies for metro construction

The Ho Chi Minh City Department of Public Works and Transportation submitted a draft plan to the municipal People's Committee for implementing Resolution No. 188/2025/QH15 of the National Assembly.

This resolution aims to pilot several special and exceptional mechanisms and policies to develop the city's urban railway network.

Director of the Ho Chi Minh City Department of Public Works and Transportation Tran Quang Lam on the afternoon of March 3 stated that according to the proposal, the city will establish the Steering Committee for Urban Railway Network Development; issue operational regulations for this committee; and establish a consultancy council to help the HCMC People's Committee implement the urban railway network development plan.

Moreover, Ho Chi Minh City will coordinate with the Ministry of Construction to develop a Decree detailing the content and requirements of the Front End Engineering Design (FEED) and FEED designs from their preliminary phases; provide guidelines on the obligations and rights of parties involved in EPC (engineering, procurement and construction) contracts, detailed regulations, instructions on planning and adjustment of zoning plans as well as detailed planning for the areas surrounding the stations; and establish mechanisms and policies under the authority of the Government and the Prime Minister.

At the same time, the city will advise development of a circular of the Ministry of Construction providing guidance on cost estimation and management for projects; draft a resolution of the Ho Chi Minh City People's Council detailing the alignment plans, locations of urban railway structures and TOD (Transit-Oriented Development) zoning to determine the location, boundaries and land acquisition areas as stipulated in Article 6 of Resolution No. 188/2025/QH15.

Furthermore, Ho Chi Minh City will issue regulations regarding the procedures for preparing, appraising and approving alignment plans, project locations along the urban railway and TOD zoning; also develop a resolution of the HCMC People's Council to provide detailed guidance on Clause 1, Article 9 of Resolution No. 183/2025/QH15; and coordinate with the Ministry of Construction and the capital city of Hanoi to develop a standardized framework of regulations and standards for urban railway projects.

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Illustrative photo: SGGP

The submission also mentioned the proposals from investors of urban railway projects regarding funding allocations for urban railway projects in the 2026-2030 mid-term period and the 2025 budget; developing financing plans for urban railway projects for the 2026-2030 and 2031-2035 periods as well as annual funding sources under requirements of identifying capital, budget plans and funding sources to ensure appropriate allocation and planning.

Additionally, investors of urban railway projects also proposed to review and assess the impact on public debt during project preparation and implementation; and suggest annual budget allocations to support the development of science and technology in the railway sector.

The draft also proposes focusing on definitively resolving the remaining issues of Metro Line No.1, as well as completing the necessary procedures to commence construction of Metro Line No.2 through ODA (Official Development Assistance) funding.

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