France to lend Vietnam EUR 200 million for commuter railway project
HANOI - The French government has signed an agreement to lend Vietnam EUR200 million for a Hanoi commuter railway project, a Ministry of Planning and Investment statement said Friday.
The project is expected to cost $450 million, funded by French low-interest loans and Vietnamese government outlays, with the rail system scheduled to begin operation in 2010.
"So far the Ministry of Economy, Finance and Industry of France has agreed to lend EUR200 million, and Vietnam is expected to receive additional loans from France for the project," a ministry official said.
Hanoi, a city of 3 million, currently has no commuter rail system, and the new project is aimed at easing the capital's traffic and air pollution problems, the official said.
The new system, with 12.5-kilometer of rail line linking the center of Hanoi to its outskirts, is projected to carry 6,000 passengers per hour by 2010, and 9,000 passengers per hour by 2020.
Dow Jones - October 6, 2006.
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