Metro Line 2 in HCMC to be financed by state budget instead of ODA loans

The Standing Board of the Ho Chi Minh City Party Committee has just agreed in principle with a proposal from the city’s People’s Committee to shift funding for projected Metro Line 2 from official development Assistance (ODA) loans to the state budget.

The move is aimed at accelerating the project’s progress.

Additionally, the project’s scope will be expanded to include the integration of Metro Lines 1 and 2 at the Ben Thanh central station, facilitating seamless connectivity.

The Standing Board has tasked the city's leadership with directing the Ho Chi Minh City Management Authority for Urban Railways (MAUR) to coordinate with relevant departments and stakeholders to urgently implement the project in line with special mechanisms, particularly under Resolution 188 passed by the National Assembly, along with related laws and resolutions.

Originally approved in 2010 with an investment capital estimated at around VND26 trillion ($1.3 billion), the project’s budget escalated in 2019 to approximately VND47.89 trillion (USD 2.1 billion), financed through ODA loans.

Although five loan agreements were signed, three—sourced from the Asian Development Bank (ADB) and the European Investment Bank (EIB)—have already expired, while two others from Germany’s KfW require extensions to continue.

The project includes seven main construction packages, but only one—CP1, which involved building the administrative office at Tham Luong depot—has been completed and operational since 2017.

The 11-kilometer metro route will pass through six districts—1, 3, 10, 12, Tan Binh, and Tan Phu, featuring nine underground stations and one elevated station. The latest project revision anticipates completion by 2030, followed by a warranty period until 2032.

In February 2025, the National Assembly enacted Resolution 188, offering special mechanisms for Ho Chi Minh City and Hanoi to drive breakthrough investments in metro infrastructure. Leveraging this resolution, Ho Chi Minh City aims to construct and complete seven metro lines totaling 355 kilometers within the next decade, from now until 2035.

Metro Line 2 has been designated as a pilot project for applying the new policies under Resolution 188. The city plans to select contractors by October 2025, with groundbreaking scheduled for December 2025. Completion is targeted for 2030.