Bus Rapid Transport project to focus on upgrading key transport corridor to demonstrate the potential of a sustainable urban transport system.
The World Bank Group’s Board of Executive Directors approved a loan of $124 million on June 1 to improve performance and efficiency in a high-priority traffic corridor in Ho Chi Minh City.
According to Mr. Arturo Ardila-Gomez, the World Bank’s Project Team Leader, with the aim of ensuring continued strong economic performance and to achieve Vietnam’s goal of successfully transitioning to middle-income status, the national government is seeking to address infrastructure constraints as one of its key strategic directions. “Given Ho Chi Minh City’s pivotal role in the national economy, the project focuses on upgrading a key transport corridor to demonstrate the potential of a sustainable urban transport system,” he said.
The project will finance the development of a Bus Rapid Transit corridor between An Lac in the city’s southwest and Rach Chiec in its northeast, following Vo Van Kiet and Mai Chi Tho streets and stretching about 23 kilometers, with 28 bus stations.
The system, once completed, will be able to transport up to 28,300 passengers a day. Its design also aims to address the needs of women, children and people with disabilities. Design features include keeping all bus and station doors at the same level, making it easier for passengers to board and exit and to load baby strollers and other carriers.
The project has a total cost of $137.45 million and will be financed by an International Development Association (IDA) credit of $124 million and Vietnamese funding of $13.45 million. The IDA credit will have a maturity of 25 years, including a grace period of five years.
Ho Chi Minh City is Vietnam’s principal economic hub, generating one-fifth of its GDP. Along with the surrounding region the city accounts for almost half of Vietnam’s total manufacturing output.