Hanoi will need some VND888 trillion (US$36.3 billion) to build nine urban railway lines, a report by the Ministry of Justice has revealed.
| A terminal in the Nhon-Hanoi Station urban railroad project. Photo: The Hanoi Times |
In a report assessing the impact of the amended Capital Law, the Ministry of Justice said Hanoi would need a total of VND4.7 trillion ($192.5 billion) to develop a comprehensive mass transit network to improve connectivity with its satellite cities.
The lack of investment capital is a major challenge for Hanoi, as the city's budget can now provide only 46% of the necessary funds for infrastructure projects, the ministry said.
According to the ministry, rapid population growth and urbanization are now outpacing the construction of transport infrastructure. Meanwhile, private investors find these projects less attractive due to the long time it takes to break even and the lack of preferential policies.
The ministry suggested Hanoi develop public passenger transport linked to urban railway lines and complete the construction of national highways, expressways, ring roads, and intra-regional and inter-regional links in accordance with urban planning.
The Ministry of Justice recommended that Hanoi authorities adopt the Transit-Oriented Development (TOD) and Public-Private Partnership (PPP) models to make more efficient use of land resources and project implementation.
The ministry also advised that the capital city auction off land rights and rights to use underground and above-ground space. The funds raised from these auctions would be invested in the construction of urban railways, their connection to public transport systems, and technical infrastructure connecting stations.
Hanoi plans to build nine railway lines with a total length of 318 kilometers across the city. Only Line 2A Cat Linh - Ha Dong is operational, four other lines have secured capital investment commitments, and the remaining lines are at the pre-feasibility stage.
The revised Capital Law is expected to provide a way out for the current situation and future of Hanoi's urban railway lines and transport infrastructure. The draft law will be submitted to the National Assembly in October.
