Final Report - Asian Development Bank

Ho Chi Minh City Metro Rail System Project Final Report - Revised
Management Authority for Urban Railways Chapter 1 - Introduction
1 INTRODUCTION
1.1 Background and Scope
1. This is the Final Report of a study financed under a Project Preparation Technical Assistance
(PPTA) by the Asian Development Bank (Project Number 4862–VIE).
2. In January 2007 the Prime Minister approved a Transport Master Plan for Ho Chi Minh City
(HCMC) that includes an urban mass rapid transit (UMRT) system consisting of six lines. The
Government of Viet Nam requested the Asian Development Bank (ADB) to provide a loan to
implement two interconnected lines, Line 2 – Tham Luong – Ben Thanh and Line 3 – Binh Tan – Ben
Thanh. The PPTA was commissioned in order to clarify the scope and feasibility of the proposed
lines, and to prepare a plan to support project implementation, including institutional and staffing
arrangements, capacity building, financing options, and an implementation program.
3. The first stage of the PPTA was a review of the UMRT proposals in the master plan.
Following the master plan review the consultants recommended that UMRT Line 1 be extended to the
west and absorb the western section of the UMRT Line 3, from Dai Lo hung Vuong/Nguyen Thi Minh
Khai intersection to Mien Tay bus terminal. This was agreed in principle by ADB and the consultants
were subsequently instructed to focus the remaining components of the PPTA on UMRT Line 2 only.
UMRT Line 1 is currently under detailed design.
4. The consultants also proposed to extend UMRT Line 2 to the northwest from Tham Luong to
An Soung, about 2.5km, and to southeast from Ben Thanh to the Saigon River on Ham Nghi, about
0.5km. These extensions were agreed but, due to cost constraints, were not ultimately included in the
project designed under this PPTA.
5. It was also agreed with MAUR and ADB that the consultants should not include the ticketing
system, and Ben Thanh station in the feasibility studies and preliminary designs. It is proposed that
these will be considered under separate projects.
6. The scope of this project is therefore the construction of about 12 km of metro line, including a
link to the proposed depot. The project includes the construction of 10 stations (not including Ben
Thanh) and the depot. It also includes provision of rolling stock. The project scope and alignment are
described in Chapter 4.
1.2 Supporting PPIAF Studies
7. To support the work of the PPTA, the ADB mobilized a grant from the Public Private
Infrastructure Advisory Facility (PPIAF) to develop appropriate short term and longer term
implementation and management arrangements for MRT in the context of wider urban transport,
including options for how best to optimize private sector participation in MRT.
8. The objectives of the PPIAF technical assistance (TA) included developing (i) a framework for
considering private sector participation in implementation and operation of the Project; (ii) a value-formoney
analysis for implementation approaches that involve varying degrees of private sector
participation, (iii) a detailed financial model reflecting the preferred approach and measuring the
performance of the project from the points of view of the government and private sector participants;
and (iv) a stakeholder feedback and a description of necessary institutional and contractual
arrangements given the preferred implementation approach
9. A summary of the PPIAF work and outputs is provided in Appendix G.
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