Metro Line 5's cost has increased to 1,31 billion euros.

Phase 1 of Ho Chi Minh City's Metro Line 5, spanning 8,89 km from Bay Hien intersection (Tan Binh district) to Tan Cang metro station, has seen its investment capital increase from 833 million euros to 1,310 million euros.

Phase 1 of Ho Chi Minh City's Metro Line 5, spanning 8,89 km from Bay Hien intersection (Tan Binh district) to Tan Cang metro station, has seen its investment capital increase from 833 million euros to 1,310 billion euros.

This figure represents an increase of 477 million euros compared to the estimate in the project outline report prepared in 2010.

Explaining the reason for the adjustment in the total investment amount, Mr. Huynh Hong Thanh - Director of Project Management Board 5, under the Ho Chi Minh City Urban Railway Management Board - the project's investor, said that the investment capital of 833 million euros, established in 2010, was only an estimate and had not been studied in detail.

By 2014, the Railway Management Board had officially studied the project, and at the end of December 2014, it submitted it to the People's Committee of Ho Chi Minh City for consideration and appraisal.

The increase of 477 million euros in the new total investment compared to the previous estimate is mainly due to the recalculation of labor costs and the rising prices of equipment and materials over the past years. 

At the same time, during the detailed study, the project included adjustments to technical items such as increasing the underground metro section by 1,45 km (the length of the underground metro line increased from 6 km to 7,45 km), and adding an underground station planned on Bach Dang Street to accommodate the tunnel boring machine…

Metro line map - Source: Urban Railway Management Board.

According to Mr. Thanh, the estimated total investment for the project is 1.31 trillion euros, which was reviewed and approved by the donors, including the Asian Development Bank (ADB), the European Investment Bank (EIB), the KfW Finance Bank (Germany), and the Spanish Government at the end of November 2014 to determine the required funding.

Following the project review and discussion, the donors committed to providing ODA funding for the project with the following details: ADB will provide 475 million euros, EIB 150 million euros, KfW 200 million euros, and the Spanish Government 275 million euros, with the remaining 210 million euros being counterpart funding from the state budget.

According to the plan, if the project is approved, implementation will begin in 2015 and the construction is expected to be completed in 2023.

According to the Youth