The Japan International Co-operation Agency (JICA) will fund the extension of the Ben Thanh-Suoi Tien Metro in HCM City that will connect with Binh Duong and Dong Nai provinces.
On May 24, the management board of HCM City railway announced that JICA had pledged to fund USD100m for the extension. 2km of railway will be built to connect Suoi Tien Station with Binh Duong Province then continue with two branches to go to the stations in Di An Commune in Binh Duong and another to Bien Hoa City in Dong Nai.
The provincial authorities have sent officials documents to the HCM City authorities to ask for financial support for construction costs.
Binh Duong and Dong Nai will pay for ground clearance cost.
According to the management board of HCM City metro, the project is still being prepared, however, JICA already said that they would provide funding. If the extension is built, the metro will have more passengers to ease road traffic.
The HCM City metro line is 20km long and has an investment of USD2.49bn. The construction was started in 2012 and the first metro lines will run through District 1, 2, and 9, Binh Thach and Thu Duc District.
It is expected to be completed in 2020. However, the line is facing a high risk of lagging behind schedule due to a shortage of capital.
The project needs a total investment of USD245.4m this year, but to date, the government has only released USD95.4m.