Description: 

The Project will develop an integrated public transport system in six districts of Ho Chi Minh City (HCMC), supporting effective utilization of HCMC Urban Mass Rapid Transit (MRT) Line 2.

Background:

The Government of Vietnam (GoV) is planning and implementing major public transport infrastructure investments to induce a shift from private to public transport modes. Failure to invest in public transport infrastructure in Vietnam’s large cities will constrain economic growth and accelerate degradation of the urban environment. The Vietnam 2012-2015 Country Partnership Strategy of ADB supports the government's program to improve urban transport infrastructure and promote public transport.

The rapid growth of private vehicles is partly attributable to the inadequacy of HCMC’s existing poorly integrated bus network, which cannot compete with private transport.  Traffic planning and management is weak and, as a result, ineffective in controlling traffic and encouraging the use of public transport. There are few policy and regulatory measures to reduce private modes of transport, and the absence of an efficient public transport system does not encourage people to switch from private vehicles.

Objectives and Outputs:

The project is the final of a series of three project loans comprising the HCMC Urban Mass Rapid Transit Line 2 (MRT2) Investment Program financing MRT2 station accessibility measures, public transport information systems and sector development implementation support. This component will facilitate urban transport challenges. The MRT2 system is expected to be more user-friendly in terms of access, convenience and security, so that the envisioned connectivity between transport modes will be realized.

The project creates a replicable demonstration toward a low carbon economy by promoting access to public transport. While the overall project has replicability in other lines of HCMC metros and future Hanoi metro projects, the CTF-funded components are also replicable in many secondary cities in Vietnam. Through access to public transport, the estimated GHG emissions reduction is 586,500 tCO2e over the project lifetime. The replicability estimates for this project are 3.8 million tCO2e.

The project will create quality public transportation alternative provided by the MRT, and will increase access to public transport, which is estimated to increase ridership by over 10 percent.

Project level output intermediate indicators include improved facilities for pedestrian and non-motorized transport (NMT) which will improve the access to MRT Line 2 stations and connectivity with other public transport. The indicators will be monitored through government statistics and ADB reporting requirements included in the loan framework.

An enabling policy and regulatory environment for low carbon technologies and practices will be created. Special focus is on institutional capacity building of the Urban Transport Management Department (UTMD) in street management, parking policy, pricing model of public and private transport in HCMC. Increased accessibility to stations will save on travel time for public transit users. Reduced local pollution of black carbon by more than 9 million tCO2e during the project lifetime will be realized through modal switch.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details:
Proposed Decision | Proposed Document | Extension of Deadline | Supplementary Appendix | External Review
Approval on September 18, 2013 (Approved Decision)
Approved amount(s): 
USD 48.95 million