The Spanish Government has committed to providing 3.4 million Euros in funding for the construction of Ho Chi Minh City’s figth metro line, said a senior Spanish official on Tuesday.
Maria Aparici Gonzalez, head of the Trade Policy Department for Europe, Asia and Oceania, under Spain’s Minister of Economics and Competition Capability, announced the commitment at a meeting with the People’s Committee of Ho Chi Minh City on Tuesday.
The funding is intended for the pre-feasibility study for the metro line, which is designed to link the Saigon Bridge with the new Can Giuoc Bus Station in the city, the official said.
Besides the funding, the Spanish government will also provide additional support to the project, Maria said.
She added that a Spanish commercial counselor will work with the city’s Urban Railway Management Unit to discuss issues related to the pre-feasibility study and a bid for the project.
The official also said that the Spanish Government will offer a €15 million loan program for a number of countries. Therefore, the city should carry out necessary procedures to enable its metro project to benefit from the program.
In addition to the fifth metro line, the city is working on four other similar projects, with ground broken on the first metro line on August 17, 2014.
Upon completion the 19.7 km long line will run from District 1 through Binh Thanh District, District 2, District 9 and Thu Duc District in Ho Chi Minh City before reaching Di An Town in neighboring Binh Duong Province.
The metro line is estimated to cost US$2.49 billion.
Speaking at the meeting, deputy chairwoman of the city People’s Committee, Nguyen Thi Hong, told her guest that the city needs a huge capital source to cover its urban and railway projects, so the city needs to be financed by many countries, including Spain.
She expressed her hope that the Spanish Government would offer more funding for the fifth metro line project.
She also pledged that the city authorities will create favorable conditions for Spanish investors to do business in the city.
Currently Spanish investors are developing 13 projects in the city.
In the past ten months of this year, two-way trade between the city and Spain amounted to about €300 million.
In reply, Maria said Spanish businesses wish to engage in investment cooperation in the city, which they said has great potential in various fields.