On the morning of July 15, at the 17th session of the 10th HCMC People's Council, Vice Chairman Duong Ngoc Hai of the HCMC People's Committee presented the proposal of the HCMC People's Committee on the development of the HCMC urban railway system according to Conclusion No.49 of the Politburo on the orientation for the development of Vietnam's railway transportation until 2030, with a vision to 2045.
Accordingly, the proposal aims to develop a modern, synchronized urban railway system, establishing a civilized public transport method and promoting socio-economic development. Specifically, the proposal seeks to achieve a public passenger transport rate of 15-20 percent by 2030, 40-50 percent by 2035, and 50-60 percent after 2035.
The total investment capital required for construction and initial operation (excluding interest during construction) from now until 2035 is approximately VND837.25 trillion (about US$35 billion), not including the investment for Metro Line No.1.
In a report at the session, Mr. Tran Quang Lam, Director of the HCMC Department of Transport, added that public investment capital will be the primary source, leveraging domestic contractor resources. Therefore, the proposal seeks a mechanism allowing contractors to participate in the design and construction phases. HCMC will coordinate with relevant agencies and units to select appropriate technology.
To achieve the goal of constructing 183 km of urban railway by 2035, the proposal recommends 28 mechanisms and policies across six issue groups to the National Assembly and the Government. These groups include policies on planning; land acquisition, compensation, and resettlement support; capital mobilization; investment procedures and authority for construction and project implementation; technical standards and technology; and organizational management and operation mechanisms.
Specifically, the proposal suggests allowing HCMC to approve planning targets for urban development areas towards Transit Oriented Development (TOD) that differ from current standards and planning. Additionally, it proposes permitting HCMC to borrow through the issuance of local government bonds with preferential interest rates.
The proposal suggests allowing HCMC to establish the Urban Railway Corporation, wholly owned by the city, with functions that include capital mobilization, investment management in construction, and multi-sector business operations to utilize the assets under its management effectively.
HCMC is expected to report to the Government about the proposal in July, submit it to the Politburo for feedback in the third quarter of 2024, and present it to the National Assembly by the end of 2024.
