Activating the appraisal process of Hanoi metro line No. 5

14 appraisal contents

According to Dau Tu Newspaper, Mr. Nguyen Chi Dung, Minister of Planning and Investment , Chairman of the State Appraisal Council has just signed Decision No. 1514/QD-HDTDNN approving the Appraisal Plan for the Pre-Feasibility Study Report of the Hanoi Urban Railway Project, Line 5 Van Cao - Ngoc Khanh - Lang - Hoa Lac (metro line 5).

This is a very important process to assess the feasibility of the Pre-Feasibility Study Report of Metro Line 5 Project before submitting it to the competent authority for approval of the investment policy.

Perspective of a section of Metro Line 5 Project (Hanoi). — Perspective of a section of Metro Line 5 Project ( Hanoi ).

It is known that there are up to 14 contents that need to be commented on by members of the State Appraisal Council, in which the most prominent are the necessity of investment, conditions for investment implementation; forecast of demand, scope of service and expected investment target, scale and form of investment; assessment of analysis and preliminary selection of main technology and techniques; analysis and preliminary selection of investment options and scale of investment items; assessment and preliminary determination of total investment, capital mobilization plan; expected progress of project implementation...

Regarding the above-mentioned technical and financial content, in early June 2021, the Prime Minister issued Official Dispatch No. 734/TTg-CN allowing the State Appraisal Council to hire a consultant to review the Pre-Feasibility Study Report of Metro Line 5 Project. Currently, the Hanoi People's Committee has decided to approve the cost estimate for reviewing the Pre-Feasibility Study Report of the Project with a budget of about 24.4 billion VND.

Applying PPP investment method

According to the research results of the Hanoi People's Committee, metro line No. 5 will be an urban railway line with double-track, electrified standards, including 6.5 km underground, 2 km elevated and 29.93 km above ground.

The project passes through the districts of Ba Dinh, Dong Da, Cau Giay, Nam Tu Liem; districts of Hoai Duc, Quoc Oai, Thach That. The route operates about 25 - 40 trains of 4 - 6 cars, designed speed of 120 km/h and 90 km/h for underground sections; waiting time for train is about 3.3 minutes.

The Metro Line 5 project has a total investment of about 65,404 billion VND, of which the construction cost is 24,844 billion VND, the equipment cost is 16,629 billion VND, expected to be invested at once, without investment phases. With the above investment scale, this will be the urban railway line with the largest investment capital scale among the metro lines that have completed the Pre-Feasibility Study Report in Hanoi.

To have enough capital to build metro line 5, the Hanoi People's Committee will allocate 15,000 billion VND from public investment capital and savings in the period of 2021 - 2025 (average 3,000 billion VND/year); 10,000 - 12,000 billion VND from equitization and divestment of enterprises; 15,000 billion VND from auctioning some land plots; issuing bonds estimated at 10,000 billion VND; borrowing from domestic and foreign financial institutions for the remaining cost (6,900 billion VND).

In Document No. 151/TTr-UBND sent to the Prime Minister on the appraisal of the Pre-Feasibility Study Report of Metro Line 5 Project, the Hanoi People's Committee requested the Head of Government to allow the project investment to be implemented using the city's budget and to pilot the implementation in the form of a partnership to implement the PDP project (learning from the Malaysian model).

“With the increasingly serious traffic congestion and environmental pollution, the proposal to research and invest in urban railway line No. 5 to gradually complete the urban railway network according to the planning is very necessary, in order to meet travel needs and move towards forming a civilized and modern public transport type in Hanoi,” said Mr. Duong Duc Tuan, Vice Chairman of Hanoi People's Committee.

(Source: Investment Newspaper)

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